By: Carona S.B. No. 1018
A BILL TO BE ENTITLED
AN ACT
relating to the agreements, costs, revenues, and finances of
regional tollway authorities; authorizing taxes, fees, and
assessments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (d), Section 222.108, Transportation
Code, is amended to read as follows:
(d) In this section, "transportation project" has the
meaning assigned by Section 370.003 and includes a turnpike project
and a system under Section 366.003.
SECTION 2. Subsection (e), Section 222.110, Transportation
Code, is amended to read as follows:
(e) The sales and use taxes to be deposited into the tax
increment account under this section may be disbursed from the
account only to:
(1) pay for the transportation project for which the
transportation reinvestment zone was designated, and for aesthetic
improvements within the zone [projects authorized under Section
222.104], including the repayment of amounts owed under a contract
[an agreement] entered into under Section 222.106 or 222.107, as
applicable [that section]; and
(2) notwithstanding Sections 321.506 and 323.505, Tax
Code, satisfy claims of holders of tax increment bonds, notes, or
other obligations issued or incurred for a transportation project
for which the zone was designated [projects authorized under
Section 222.104].
SECTION 3. Subdivisions (8), (9), and (11), Section
366.003, Transportation Code, are amended to read as follows:
(8) "Governmental [Local governmental] entity" means
a political subdivision of the state, including a municipality or a
county, a political subdivision of a county, a group of adjoining
counties, a district organized or operating under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution, the
department, another state agency, [or] a nonprofit corporation,
including a transportation corporation created under Chapter 431,
or any other public entity or instrumentality.
(9) "Revenue" means the tolls, rents, and other money
received by an authority:
(A) from the ownership or operation of a turnpike
project; or
(B) under an agreement under Section 366.302 or
366.303.
(11) "Turnpike project" means a highway of any number
of lanes, with or without grade separations, owned or operated
wholly or partly by an authority under this chapter and any
improvement, extension, or expansion to that highway, including:
(A) an improvement to relieve traffic congestion
and promote safety;
(B) a bridge, tunnel, overpass, underpass,
interchange, service road, ramp, entrance plaza, approach, or
tollhouse;
(C) an administration, storage, or other
building the authority considers necessary to operate the turnpike
project;
(D) a parking area or structure, rest stop, park,
and other improvement or amenity the authority considers necessary,
useful, or beneficial for the operation of a turnpike project;
[and]
(E) property rights, easements, and interests
the authority acquires to construct or operate the turnpike
project; and
(F) improvements in a transportation
reinvestment zone designated under Subchapter E, Chapter 222.
SECTION 4. Section 366.004, Transportation Code, is amended
to read as follows:
Sec. 366.004. [CONSTRUCTION] COSTS OF TURNPIKE DEFINED.
(a) The cost of [acquisition, construction, improvement,
extension, or expansion of] a turnpike project or system under this
chapter includes the cost of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the turnpike project or
system;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and after
acquisition, construction, improvement, extension, or expansion as
provided in the bond proceedings;
(5) traffic estimates, revenue estimates, engineering
and legal services, plans, specifications, surveys, appraisals,
construction cost estimates, and other expenses necessary or
incidental to determining the feasibility of the acquisition,
construction, improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings, including any costs associated with
necessary environmental mitigation measures;
(8) financing;
(9) the assumption of debts, obligations, and
liabilities of an entity relating to a turnpike project or system
transferred to an authority by that entity; [and]
(10) expenses related to the initial operation of the
turnpike project or system;
(11) payment obligations of an authority under a
contract or agreement authorized by this chapter in connection with
the acquisition, construction, improvement, extension, expansion,
or financing of the turnpike project or system; and
(12) any other cost and expense for the maintenance,
repair, administration, or operation of a turnpike project or
system, including all cost and expense for provision of tolling
services or financial security under Section 366.038.
(b) Costs of [attributable to] a turnpike project or system
[and] incurred before the issuance of bonds to finance the turnpike
project or system may be reimbursed from the proceeds of sale of the
bonds.
SECTION 5. Subsections (a), (g), and (k), Section 366.033,
Transportation Code, are amended to read as follows:
(a) An authority, acting through its board, without state
approval, supervision, or regulation, may:
(1) adopt rules for the regulation of its affairs and
the conduct of its business;
(2) adopt an official seal;
(3) study, evaluate, design, finance, acquire,
construct, maintain, repair, and operate turnpike projects,
individually or as one or more systems;
(4) acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under this
chapter;
(5) enter into contracts or operating agreements with
similar authorities, other governmental entities, or agencies of
the United States, a state of the United States, the United Mexican
States, or a state of the United Mexican States;
(6) enter into contracts or agreements necessary or
incidental to its duties and powers under this chapter;
(7) cooperate and work directly with property owners
and governmental entities [agencies] and officials to support an
activity required to promote or develop a turnpike project or
system;
(8) employ and set the compensation and benefits of
administrators, consulting engineers, attorneys, accountants,
construction and financial experts, superintendents, managers,
full-time and part-time employees, agents, consultants, and such
other persons as the authority considers necessary or useful;
(9) apply for and directly or indirectly receive and
spend loans, gifts, grants, and other contributions for the
construction of a turnpike project or system, and receive and spend
contributions of money, property, labor, or other things of value
from any source, including the United States, a state of the United
States, the United Mexican States, a state of the United Mexican
States, the commission, the department, any subdivision of the
state, or any other [local] governmental or private entity, to be
used for the purposes for which the grants or contributions are
made, and enter into any agreement necessary for the grants or
contributions;
(10) install, construct, maintain, repair, renew,
relocate, and remove public utility facilities in, on, along, over,
or under a turnpike project;
(11) organize a corporation under Chapter 431 for the
promotion and development of turnpike projects and systems;
(12) adopt and enforce rules not inconsistent with
this chapter for the use of any turnpike project or system,
including:
(A) rules relating to enforcement of tolls,
fares, or other user fees;
(B) speed and weight limit rules; and
(C) traffic and other public safety rules;
(13) enter into leases, operating agreements, service
agreements, licenses, franchises, and similar agreements with
public or private parties governing the parties' use of all or any
portion of a turnpike project and the rights and obligations of the
authority with respect to a turnpike project; and
(14) do all things necessary or appropriate to carry
out the powers expressly granted by this chapter.
(g) An authority and any [local] governmental entity,
including the department, may enter into a contract under which the
authority will operate a turnpike project or system on behalf of the
[local] governmental entity. [An authority may enter into a
contract with the department under which the authority will operate
a turnpike project or system on behalf of the department.]
(k) If an authority enters into a contract or agreement to
design, finance, construct, operate, maintain, or perform any other
function for a turnpike project, system, or improvement authorized
by law on behalf of a [local] governmental entity, including the
commission, the department, a regional mobility authority, or any
other entity, the contract or agreement may provide that the
authority, in performing the function, is governed by the
applicable provisions of this chapter and the rules and procedures
adopted by the authority under this chapter, in lieu of the laws,
rules, or procedures applicable to the other party for the
performance of the same function.
SECTION 6. Section 366.034, Transportation Code, is amended
by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsection (b), the board may authorize
the transfer of revenue from one or more turnpike projects or
systems to a general fund of the authority if the transfer does not
violate, and is not inconsistent with, any bond proceedings
governing the use of the revenue. An authority may use revenue or
other money in a general fund for any purpose authorized by this
chapter.
SECTION 7. Section 366.036, Transportation Code, is amended
to read as follows:
Sec. 366.036. TRANSFER OF TURNPIKE PROJECT OR SYSTEM.
(a) An authority may transfer any of its turnpike projects or
systems to one or more [local] governmental entities if:
(1) the authority has commitments from the governing
bodies of the [local] governmental entities to assume jurisdiction
over the transferred projects or systems;
(2) property and contract rights in the transferred
projects or systems and bonds issued for the projects or systems are
not affected unfavorably;
(3) the transfer is not prohibited under the bond
proceedings applicable to the transferred projects or systems;
(4) adequate provision has been made for the
assumption of all debts, obligations, and liabilities of the
authority relating to the transferred projects or systems by the
[local] governmental entities assuming jurisdiction over the
transferred projects or systems;
(5) the [local] governmental entities are authorized
to assume jurisdiction over the transferred projects or systems and
to assume the debts, obligations, and liabilities of the authority
relating to the transferred projects or systems; and
(6) the transfer has been approved by the
commissioners court of each county that is part of the authority.
(b) An authority may transfer to one or more [local]
governmental entities any traffic estimates, revenue estimates,
plans, specifications, surveys, appraisals, and other work product
developed by the authority in determining the feasibility of the
acquisition, construction, improvement, extension, or expansion of
a turnpike project or system, and the authority's rights and
obligations under any related agreements, if the requirements of
Subsections (a)(1) and (6) are met.
(c) A [local] governmental entity shall, using any lawfully
available funds, reimburse any expenditures made by an authority
from its feasibility study fund or otherwise to pay the costs of
work product transferred to the [local] governmental entity under
Subsection (b) and any other amounts expended under related
agreements transferred to the [local] governmental entity. The
reimbursement may be made over time, as determined by the [local]
governmental entity and the authority.
SECTION 8. Subsections (a), (c), and (f), Section 366.037,
Transportation Code, are amended to read as follows:
(a) In addition to the powers granted under this chapter and
without supervision or regulation by any state agency or other
[local] governmental entity, but subject to an agreement entered
into under Subsection (c), the board of an authority may by
resolution, and on making the findings set forth in this
subsection, authorize the use of surplus revenue of a turnpike
project or system for the study, design, construction, maintenance,
repair, and operation of a highway or similar facility that is not a
turnpike project if the highway or similar facility is:
(1) situated in a county in which the authority is
authorized to design, construct, and operate a turnpike project;
(2) anticipated to either:
(A) enhance the operation or revenue of an
existing, or the feasibility of a proposed, turnpike project by
bringing traffic to that turnpike project or enhancing the flow of
traffic either on that turnpike project or to or from that turnpike
project to another facility; or
(B) ameliorate the impact of an existing or
proposed turnpike project by enhancing the capability of another
facility to handle traffic traveling, or anticipated to travel, to
or from that turnpike project; and
(3) not anticipated to result in an overall reduction
of revenue of any turnpike project or system.
(c) An authority shall enter into an agreement to implement
this section with the department, the commission, or another [a
local] governmental entity[, or another political subdivision]
that owns a street, road, alley, or highway that is directly
affected by the authority's turnpike project or related facility.
(f) Except as provided by this section, an authority has the
same powers and may use the same procedures with respect to the
study, financing, design, acquisition, construction, maintenance,
repair, and operation of a highway or similar facility under this
section as are available to the authority with respect to a turnpike
project or system.
SECTION 9. Section 366.038, Transportation Code, is amended
by amending Subsection (c) and adding Subsection (c-1) to read as
follows:
(c) An authority may [not] provide financial security,
including a cash collateral account, letter of credit, surety bond,
or other credit agreement, for the performance of tolling services
the authority provides under this section, regardless of when an
agreement to provide such services was entered into, unless [if]:
(1) the authority determines that providing security
could restrict the amount, or increase the cost, of bonds or other
debt obligations the authority may subsequently issue under this
chapter; or
(2) the authority is not reimbursed its cost of
providing the security.
(c-1) Financial security provided and any related agreement
entered into by an authority under this section does not require the
approval of the attorney general under Section 366.116 or any other
law.
SECTION 10. Subsection (a), Section 366.071,
Transportation Code, is amended to read as follows:
(a) An authority may pay the expenses of studying the cost
and feasibility of a proposed turnpike project or system, the
expenses of designing and engineering a proposed turnpike project
or system, and any other expenses relating to the preparation and
issuance of bonds for a proposed turnpike project or system by:
(1) using legally available revenue derived from an
existing turnpike project or system;
(2) borrowing money and issuing bonds or entering into
a loan agreement payable out of legally available revenue
anticipated to be derived from the operation of an existing
turnpike project or system; or
(3) pledging to the payment of the bonds or loan
agreements:
(A) legally available revenue anticipated to be
derived from the operation of an existing turnpike project or
system;
(B) proceeds from the sale of other bonds; or
(C) revenue legally available to the authority
from another source.
SECTION 11. Subsection (c), Section 366.072,
Transportation Code, is amended to read as follows:
(c) Money in the feasibility study fund may be used only to
pay:
(1) the expenses of:
(A) studying the cost and feasibility of a
proposed turnpike project or system; or
(B) designing and engineering a proposed
turnpike project or system; or
(2) [and] any other expenses relating to:
(A) [(1)] the preparation and issuance of bonds
for, or the financing of:
(i) the acquisition and construction of a
proposed turnpike project or system; or
(ii) [;
[(2) the financing of] the improvement, extension, or
expansion of an existing turnpike project or system; or [and]
(B) [(3)] private participation, as authorized
by law, in:
(i) the financing of a proposed turnpike
project or system;
(ii) [,] the refinancing of an existing
turnpike project or system;[,] or
(iii) the financing of an improvement,
extension, or expansion of a turnpike project or system.
SECTION 12. The heading to Section 366.073, Transportation
Code, is amended to read as follows:
Sec. 366.073. FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,
OTHER [LOCAL] GOVERNMENTAL ENTITY, OR PRIVATE GROUP.
SECTION 13. Subsection (a), Section 366.073,
Transportation Code, is amended to read as follows:
(a) One or more municipalities, counties, or [local]
governmental entities, a combination of municipalities, counties,
and [local] governmental entities, or a private group or
combination of individuals [in this state] may pay all or part of
the expenses of studying the cost and feasibility of a proposed
turnpike project or system and any other expenses relating to:
(1) the preparation and issuance of bonds for, or the
financing of:
(A) the acquisition and construction of a
proposed turnpike project or system by an authority; or
(B) [(2)] the improvement, extension, or
expansion of an authority's existing turnpike project or system; or
(2) [(3)] the use of private participation under
applicable law in connection with the acquisition, construction,
improvement, expansion, extension, maintenance, repair, or
operation of a turnpike project or system by an authority.
SECTION 14. Section 366.111, Transportation Code, is
amended by amending Subsection (a) and adding Subsection (i) to
read as follows:
(a) An authority, by adoption of a bond resolution, may
authorize the issuance of bonds to pay all or part of the cost of a
turnpike project or system, to refund any bonds previously issued
for the turnpike project or system, or to pay for all or part of the
cost of a turnpike project or system that is or will become a part of
another system.
(i) Bonds issued under this chapter shall be considered
authorized investments under Chapter 2256, Government Code, for
this state, any governmental entity, and any other public entity
proposing to invest in the bonds.
SECTION 15. Subsections (a) and (b), Section 366.113,
Transportation Code, are amended to read as follows:
(a) The principal of, interest on, and any redemption
premium on bonds issued by an authority are payable solely from:
(1) the revenue of the turnpike project or system for
which the bonds are issued, including tolls pledged to pay the
bonds;
(2) payments made under an agreement with the
commission or a [local] governmental entity as authorized
[provided] by this chapter [Subchapter G];
(3) revenue [money derived from any other source
available to the authority, other than money derived] from a
turnpike project that is not part of the same system or [money
derived] from a different system[, except to the extent] that [the
surplus revenue of a turnpike project or system] has been pledged
for that purpose under Section 366.175; [and]
(4) amounts received under a credit agreement relating
to the turnpike project or system for which the bonds are issued;
(5) revenue or other money in a general fund of an
authority;
(6) proceeds of the sale of other bonds; and
(7) revenue or other money derived from any other
source available to the authority.
(b) Bonds issued under this chapter do not constitute a debt
of the state, a governmental entity, or any of the counties of an
authority or a pledge of the faith and credit of the state, a
governmental entity, or any of the counties. Each bond must contain
on its face a statement to the effect that the state, the authority,
[and] the counties of the authority, and any other governmental
entity are not obligated to pay the bond or the interest on the bond
from a source other than the amount pledged to pay the bond and the
interest on the bond, and [neither] the faith and credit and taxing
power of neither the state, any governmental entity, or the
counties of the authority are pledged to the payment of the
principal of or interest on the bond. This subsection does not
apply to a governmental entity that has issued bonds or entered into
an agreement under Subchapter G.
SECTION 16. Subsection (a), Section 366.114,
Transportation Code, is amended to read as follows:
(a) A lien on or a pledge of revenue from a turnpike project
or system under this chapter, a lien on or a pledge of revenue from
[or on] a reserve, replacement, or other fund established in
connection with a bond issued under this chapter, or a lien on or a
pledge of revenue from a contract or agreement entered into under
this chapter:
(1) is enforceable at the time of payment for and
delivery of the bond or on the effective date of the contract or
agreement;
(2) applies to an item on hand or subsequently
received;
(3) applies without physical delivery of an item or
other act; and
(4) is enforceable against any person having any
claim, in tort, contract, or other remedy, against the applicable
authority without regard to whether the person has notice of the
lien or pledge.
SECTION 17. Subsection (a), Section 366.117,
Transportation Code, is amended to read as follows:
(a) A bank or trust company incorporated under the laws of
this state or that maintains an office in this state that acts as
depository of the proceeds of bonds or of revenue may furnish
indemnifying bonds or pledge securities that an authority requires.
SECTION 18. Section 366.118, Transportation Code, is
amended to read as follows:
Sec. 366.118. APPLICABILITY OF OTHER LAW; CONFLICTS. All
laws affecting the issuance of bonds by [local] governmental
entities, including Chapters 1201, 1202, 1204, and 1371, Government
Code, apply to bonds issued under this chapter. To the extent of a
conflict between those laws and this chapter, the provisions of
this chapter prevail.
SECTION 19. Subsection (a), Section 366.162,
Transportation Code, is amended to read as follows:
(a) An authority may construct or improve a turnpike project
on real property, including a right-of-way acquired by the
authority or provided to the authority for that purpose by the
commission, a political subdivision of this state, or any other
[local] governmental entity.
SECTION 20. Subchapter E, Chapter 366, Transportation Code,
is amended by adding Section 366.1631 to read as follows:
Sec. 366.1631. PARTICIPATION PAYMENT FOR REAL PROPERTY.
(a) As an alternative to paying for an interest in real property or
a real property right with a single fixed payment, an authority may,
with the property owner's consent, pay the owner by means of a
participation payment.
(b) A right to receive a participation payment under this
section is subordinate to any right to receive a fee as payment on
the principal of or interest on a bond that is issued for the
construction of the applicable segment.
(c) In this section, "participation payment" means an
intangible legal right to receive a percentage of one or more
identified fees related to a segment constructed by the authority.
SECTION 21. Subsection (b), Section 366.168,
Transportation Code, is amended to read as follows:
(b) At its option, an authority may negotiate for and
purchase the severed real property or any part of the severed real
property if the authority and the property owner agree on terms for
the purchase. Notwithstanding Section 272.001, Local Government
Code, an [An] authority may, by any commercially available method,
sell and dispose of severed real property that it determines is not
necessary or useful to the authority. Severed property must be
appraised before being offered for sale by an authority.
SECTION 22. Subsections (a), (b), and (c), Section 366.169,
Transportation Code, are amended to read as follows:
(a) An authority may use real property, including submerged
land, streets, alleys, and easements, owned by the state or another
[a local] governmental entity that the authority considers
necessary for the construction or operation of a turnpike project.
(b) The state or another [a local] governmental entity
having charge of public real property may consent to the use of the
property for a turnpike project.
(c) Except as provided by Section 228.201, the state or
another [a local] governmental entity may convey, grant, or lease
to an authority real property, including highways and other real
property already devoted to public use and rights or easements in
real property, that may be necessary or convenient to accomplish
the authority's purposes, including the construction or operation
of a turnpike project. A conveyance, grant, or lease under this
section may be made without advertising, court order, or other
action other than the normal action of the state or another [local]
governmental entity necessary for a conveyance, grant, or lease.
SECTION 23. Subsection (c), Section 366.170,
Transportation Code, is amended to read as follows:
(c) An authority has full easements and rights-of-way
through, across, under, and over any property owned by the state or
another [any local] governmental entity that are necessary or
convenient to construct, acquire, or efficiently operate a turnpike
project or system under this chapter. This subsection does not
affect the obligation of the authority under other state law,
including Section 373.102, to compensate or reimburse the state for
the use or acquisition of an easement or right-of-way on property
owned by or on behalf of the state. An authority's use of property
owned by or on behalf of the state is subject to any covenants,
conditions, restrictions, or limitations affecting that property.
SECTION 24. Section 366.173, Transportation Code, is
amended by amending Subsections (b), (c), and (d) and adding
Subsection (h) to read as follows:
(b) Tolls must be set so that the aggregate of tolls from an
authority's turnpike project or system, together with other revenue
of the turnpike project or system:
(1) provides revenue sufficient to pay:
(A) the cost of maintaining, repairing, and
operating the turnpike project or system; [and]
(B) the principal of and interest on the bonds
issued for the turnpike project or system as those bonds become due
and payable; and
(C) any other payment obligations of the
authority under a contract or agreement authorized under this
chapter; and
(2) creates reserves for a purpose listed under
Subdivision (1).
(c) Tolls are not subject to supervision or regulation by
any state agency or other [local] governmental entity.
(d) Tolls and other revenue derived from a turnpike project
or system for which bonds are issued, except the part necessary to
pay the cost of maintenance, repair, and operation and to provide
reserves for those costs as may be provided in the bond proceedings,
shall be set aside at regular intervals as may be provided in the
bond resolution or trust agreement in a sinking fund that is pledged
to and charged with the payment of:
(1) interest on the bonds as it becomes due;
(2) principal of the bonds as it becomes due;
(3) necessary charges of paying agents for paying
principal and interest; [and]
(4) the redemption price or the purchase price of
bonds retired by call or purchase as provided by the bond
proceedings; and
(5) any amounts due under credit agreements.
(h) Notwithstanding any other provision of this chapter, an
authority may pledge all or any part of its revenue and any other
funds available to the authority to the payment of any obligations
of the authority under a contract or agreement authorized by this
chapter.
SECTION 25. Section 366.175, Transportation Code, is
amended to read as follows:
Sec. 366.175. USE OF [SURPLUS] REVENUE. The board of an
authority may by resolution authorize the use of [surplus] revenue
of a turnpike project or system to pay the costs of another turnpike
project or system [other than a project financed under Subchapter
G]. The board may in the resolution prescribe terms for the use of
the revenue, including the pledge of the revenue, but may not take
an action under this section that violates, impairs, or is
inconsistent with a bond resolution, trust agreement, or indenture
governing the use of the [surplus] revenue.
SECTION 26. Subsection (b), Section 366.176,
Transportation Code, is amended to read as follows:
(b) An authority is exempt from payment of development fees,
utility connection fees, assessments, and service fees imposed or
assessed by a county, municipality, road and utility district,
river authority, any other [state or local] governmental entity, or
any property owners' or homeowners' association.
SECTION 27. Subsection (c), Section 366.182,
Transportation Code, is amended to read as follows:
(c) An authority may contract with any [state or local]
governmental entity for the services of peace officers of that
entity [agency].
SECTION 28. Subsections (j) and (k), Section 366.251,
Transportation Code, are amended to read as follows:
(j) The board of an authority shall select one director as
the presiding officer of the board to serve in that capacity until
the person is no longer [person's term as] a director or the board
selects another director as the presiding officer [expires]. The
board shall elect one director as assistant presiding officer. The
board shall select a secretary and treasurer, neither of whom need
be a director.
(k) If a vacancy exists on a board, the majority of
directors serving on the board is a quorum. The vote of a majority
attending a board meeting is necessary for any action taken by the
board, provided that the directors of an authority may adopt rules
requiring a vote of greater than a majority of directors attending a
board meeting to approve:
(1) transferring all or substantially all of the
authority's assets or a material portion of a turnpike project or
system;
(2) assuming another entity's debts, obligations, or
liabilities;
(3) undertaking a turnpike project that is not
expected to satisfy financial criteria within a time as provided by
a rule adopted by the board;
(4) the inclusion of a county in the authority under
Section 366.031(d);
(5) the authority's cessation of operations,
abolishment, or reconstitution as an entity different from a
regional tollway authority;
(6) removing a director; or
(7) amending a rule adopted under Subdivision (1),
(2), (3), (4), (5), or (6). [If a vacancy exists on a board, the
majority of directors serving on the board is a quorum.]
SECTION 29. Section 366.302, Transportation Code, is
amended by amending Subsections (a), (b), (c), and (d) and adding
Subsection (h) to read as follows:
(a) An authority may enter into an agreement with one or
more [a] public or private entities [entity], including a toll road
corporation, the United States, a state of the United States, the
United Mexican States, a state of the United Mexican States, or a
[local] governmental entity, [or another political subdivision,]
to permit the entity, jointly with the authority, to study the
feasibility of a turnpike project or system or to acquire, design,
finance, construct, maintain, repair, operate, extend, or expand a
turnpike project or system. An authority and a private entity
jointly may enter into an agreement with another governmental
entity to study the feasibility of a turnpike project or system or
to acquire, design, finance, construct, maintain, repair, operate,
extend, or expand a turnpike project or system.
(b) An authority has broad discretion to negotiate
provisions in a development agreement with a private entity. The
provisions may include provisions relating to:
(1) the design, financing, acquisition, construction,
maintenance, and operation of a turnpike project or system in
accordance with standards adopted by the authority; and
(2) professional and consulting services to be
rendered under standards adopted by the authority in connection
with a turnpike project or system.
(c) An authority may not incur a financial obligation on
behalf of, or otherwise guarantee the obligations of, a private
entity that acquires, constructs, maintains, or operates a turnpike
project or system.
(d) An authority or a county in an authority is not liable
for any financial or other obligation of a turnpike project or
system solely because a private entity acquires, constructs,
finances, or operates any part of a turnpike project or system.
(h) For purposes of this section, "turnpike project"
includes a toll project, as defined by Section 372.001, of another
entity regardless of whether the authority will ever own or operate
the project.
SECTION 30. Section 366.303, Transportation Code, is
amended to read as follows:
Sec. 366.303. AGREEMENTS BETWEEN AUTHORITY AND [LOCAL]
GOVERNMENTAL ENTITIES. (a) A [local] governmental entity [other
than a nonprofit corporation] may, consistent with the Texas
Constitution, issue bonds or enter into and make payments under
agreements with an authority to acquire, construct, maintain, or
operate a turnpike project or system, whether inside or outside the
geographic boundaries of the governmental entity.
(a-1) Agreements under Subsection (a) may:
(1) include agreements for the governmental entity to
pay the principal of, and interest on, bonds, notes, or other
obligations issued by the authority; and
(2) make payments under any related credit agreements.
(a-2) The governmental entity may levy and collect taxes to
pay the interest on [the] bonds issued under Subsection (a) and to
provide a sinking fund for the redemption of the bonds.
(b) In addition to the powers provided by Subsection (a), a
[local] governmental entity may, within any applicable
constitutional limitations, agree with an authority to:
(1) issue bonds or enter into and make payments under
an agreement to acquire, construct, maintain, or operate any
portion of a turnpike project or system of that authority;
(2) create:
(A) a taxing district;
(B) a transportation reinvestment zone under
Subchapter E, Chapter 222; or
(C) an entity to promote economic development;
and
(3) collect and remit to an authority taxes, fees, or
assessments collected for purposes of developing turnpike projects
or systems.
(b-1) An agreement under Subsection (b) may include a means
for a governmental entity to pledge or otherwise provide funds for a
transportation project that benefits the governmental entity to be
developed by the authority.
(c) To make payments under an agreement under Subsection
(b), to pay the interest on bonds issued under Subsection (b), or to
provide a sinking fund for the bonds or the agreement [contract], a
[local] governmental entity may:
(1) pledge revenue from any available source,
including annual appropriations;
(2) levy and collect taxes;
(3) use funds deposited in a tax increment account
established for a transportation reinvestment zone under
Subchapter E, Chapter 222; or
(4) [(3)] provide for a combination of Subdivisions
(1), [and] (2), and (3).
(d) The term of an agreement under this section may not
exceed 40 years.
(e) Any election required to permit action under this
subchapter must be held in conformity with Chapter 1251, Government
Code, or other law applicable to the [local] governmental entity.
(f) The governing body of any governmental entity issuing
bonds, notes, or other obligations or entering into agreements
under this section may exercise the authority granted to the
governing body of an issuer with regard to issuance of obligations
under Chapter 1371, Government Code, except that the prohibition in
that chapter on the repayment of an obligation with ad valorem taxes
does not apply to an issuer exercising the authority granted by this
section.
(g) An agreement under this section may contain repayment or
reimbursement obligations of an authority.
SECTION 31. Subsections (f) and (g), Section 366.407,
Transportation Code, are amended to read as follows:
(f) If an authority enters into a comprehensive development
agreement with a private participant that includes the collection
by the private participant of tolls for the use of a turnpike
project or system [toll project], the private participant shall
submit to the authority for approval:
(1) the methodology for:
(A) the setting of tolls; and
(B) increasing the amount of the tolls;
(2) a plan outlining methods the private participant
will use to collect the tolls, including:
(A) any charge to be imposed as a penalty for late
payment of a toll; and
(B) any charge to be imposed to recover the cost
of collecting a delinquent toll; and
(3) any proposed change in an approved methodology for
the setting of a toll or a plan for collecting the toll.
(g) Except as provided by this subsection, a comprehensive
development agreement with a private participant that includes the
collection by the private participant of tolls for the use of a
turnpike project or system [toll project] may be for a term not
longer than 50 years from the later of the date of final acceptance
of the project or system or the start of revenue operations by the
private participant, not to exceed a total term of 52 years. The
contract must contain an explicit mechanism for setting the price
for the purchase by the authority of the interest of the private
participant in the contract and related property, including any
interest in a highway or other facility designed, developed,
financed, constructed, operated, or maintained under the contract.
SECTION 32. Subsection (a), Section 366.409,
Transportation Code, is amended to read as follows:
(a) Payments received by an authority under a comprehensive
development agreement shall be used by the authority to finance the
acquisition, construction, maintenance, or operation of a turnpike
project or a highway.
SECTION 33. This Act takes effect September 1, 2013.