83R3682 JTS-D
By: Guillen H.B. No. 2680
A BILL TO BE ENTITLED
AN ACT
relating to state financing for certain transportation projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 222, Transportation Code,
is amended by adding Section 222.054 to read as follows:
Sec. 222.054. LOCAL PARTICIPATION: PROJECT ANALYSIS. (a)
Before the department agrees to provide financing to a political
subdivision for a highway or road project, the department shall use
private sector engineering-related services, as described by
Section 223.041(a), to conduct an independent analysis of the
project, including an evaluation of whether the project is suitable
for any financing mechanism or structure that would:
(1) decrease the amount of financing provided by the
department to the local authority; or
(2) increase the revenue return of the project, if
any, used to pay the debt service on an annual basis.
(b) If the project is eligible for a financing mechanism or
structure that meets a purpose described by Subsection (a), the
department shall require the political subdivision to adopt the
financing mechanism or structure as a condition of the department
agreeing to provide financing to the political subdivision.
(c) The department by rule shall develop programs to educate
local transportation planning entities about financing mechanisms
and structures available to political subdivisions for highway or
road projects, including:
(1) economically driven mobility projects eligible
for financing under Section 222.078;
(2) pass-through tolls under Section 222.104; and
(3) transportation reinvestment zones under Sections
222.106 and 222.107.
SECTION 2. Subchapter D, Chapter 222, Transportation Code,
is amended by adding Section 222.078 to read as follows:
Sec. 222.078. ECONOMICALLY DRIVEN MOBILITY PROJECT
SUBACCOUNT. (a) The economically driven mobility project
subaccount is a subaccount in the bank. The subaccount consists of
revenue received from projects financed under this section and
proceeds from obligations secured by revenue received from those
projects. Money in the subaccount may be used only to finance
projects selected as economically driven using the process and
criteria developed under this section.
(b) The department by rule shall develop a process and
criteria for project selection using established economic
principles for evaluating projects. Project selection criteria
must prioritize projects that:
(1) promote economic development, including by
creating employment and cash flow;
(2) have sustainable economic value;
(3) create transportation corridors as opposed to
isolated projects; and
(4) have a reliable source of local financial
participation.
(c) To be eligible for financing under this section, a
project must have a source of financial participation from one or
more local governments in whose boundaries the project will be
located.
(d) The department shall develop a project application
process for local transportation planning entities to identify
projects suitable for funding under this section.
(e) The department may contract with local governments or
private entities for the construction of selected projects,
including construction through pass-through toll agreements under
Section 222.104, or may construct projects itself.
(f) Revenue from projects financed under this section must
be deposited to the credit of the economically driven mobility
project subaccount. The department may contract with local
governments or directly with private entities, including property
owners, who will benefit from a selected project to recover amounts
sufficient to cover the cost of the project and any associated debt
service for the project. Revenue may include:
(1) tax increment recovered from a transportation
reinvestment zone; and
(2) other revenue derived from the increase of value
attributable to a project financed under this section.
SECTION 3. The Texas Department of Transportation shall
establish the process and criteria for the selection of
economically driven mobility projects as required by Section
222.078, Transportation Code, as added by this Act, not later than
September 1, 2014.
SECTION 4. This Act takes effect September 1, 2013.