By: Nichols S.B. No. 1727
A BILL TO BE ENTITLED
AN ACT
relating to local government corporations created for the
development, construction, operation, management, or financing of
transportation projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 431, Transportation Code,
is amended by adding Section 431.1015 to read as follows:
Sec. 431.1015. CORPORATIONS OF CERTAIN POPULOUS COUNTIES
FOR TOLL PROJECTS. (a) Notwithstanding Chapter 284 or any other
law, a county with a population of more than four million may not
create a local government corporation under this chapter to
develop, construct, operate, manage, or finance a toll project or
system located in the county.
(b) An existing local government corporation created by a
county described by Subsection (a) for the purposes described by
that subsection:
(1) may not:
(A) undertake any new bonds, notes, or other
obligations or extend the terms of any existing bonds, notes or
other obligations; or
(B) enter into any new contracts or extend the
terms of any existing contracts; and
(2) must be dissolved when all bonds, notes and other
obligations and contracts of the corporation have been satisfied.
(c) This subsection and Subsection (b) expire on the date
that the local government corporation described by Subsection (b)
is dissolved.
SECTION 2. Section 431.107, Transportation Code, is amended
by adding Subsection (c) to read as follows:
(c) Notwithstanding any other provision of this chapter,
income earned and revenues received by a local government
corporation created in a county to which Chapter 284 applies may
only be used to pay the a costs of a turnpike project, as that term
is defined by Section 370.003(15) or for a road, street, or highway
projects as provided for under section 284.0031.
SECTION 3. 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, 2021.