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SRC-SEW S.B. 342 77(R)BILL ANALYSIS Senate Research Center S.B. 342 By: Shapiro State Affairs 6/20/2001 Enrolled DIGEST AND PURPOSE Under current law, the Texas Department of Transportation (TxDOT) is authorized to expend money from any source available for the cost of turnpikes, toll roads, or toll bridges of the Texas Turnpike Authority provided that money expended out of the state highway fund is repaid from tolls or other turnpike revenue. TxDOT and the Texas Transportation Commission are also authorized to participate in the cost, construction, maintenance, and operation of toll facilities of various entities provided that funds expended are repaid. TxDOT is precluded from advancing funds for turnpike project development without an obligation of repayment. Entities that construct toll facilities seek federal and state highway funds to leverage their own funds and complete financing for high-cost facilities, but repayment obligations may make construction infeasible. S.B. 342 removes the requirement for repayment from public entities and authorizes TxDOT to expend funds for the cost of toll projects of public and private entities. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Transportation Commission in SECTION 1 (Section 222.103, Transportation Code) and SECTION 2 (Section 361.003, Transportation Code) of this bill SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 222.103, Transportation Code, as follows: Sec. 222.103. (a) Authorizes the Texas Department of Transportation (department) to participate, by spending money from any available source, in the cost of the acquisition of a toll facility of a public or private entity on terms and conditions established by the Texas Transportation Commission (commission) . Authorizes the commission to require the repayment of any money spent by the department for the cost of a toll facility of a public entity and requires the commission to require the repayment of any money spent by the department for the cost of a toll facility of a private entity. Deletes language regarding the inclusion of requirements for repayment. (b) Requires money repaid as required by the commission to be deposited to the credit of the fund from which the expenditure was made. Provides that money deposited as required by this section is exempt from the application of Section 403.095, Government Code. (c) Provides that a bond or other debt obligation issued by a public or private entity to finance the cost of a toll facility in which the department participates is an obligation of the issuing entity and prohibits such from being an obligation of this state. (d) Deletes language regarding an entity receiving cost participation from the department under this section being a successor agency to the Texas Turnpike Authority for the purposes of Section 52b (Loan of State's Credit or Grant of Public Money for Toll Road Purposes; Exception), Article III, Texas Constitution. Makes a nonsubstantive change. (e) Makes a nonsubstantive change. Requires the department to notify each member of the legislature that represents any part of the area affected by the project of the status of the project and how any other project in any other district would be affected on request of a member of the legislature not later than the 90th day before the date an expenditure is made by the department for a project under this section. (f) Provides that this section applies to any participation by the department in the cost of a project under Chapter 284, 361, or 366. (g) Requires the commission to adopt rules to implement Subsection (a). (h) Prohibits money granted by the department each federal fiscal year under this section from exceeding 30 percent of the obligation authority under the federal-aid highway program that is distributed to this state in that year. (i) Requires any project that uses money that is granted or loaned from constitutionally dedicated funds for the construction or maintenance of a project to be let by a competitive bidding procedure in which the contract is awarded to the lowest responsible bidder. (j) Authorizes, notwithstanding Subsection (i), the Texas Turnpike Authority division of the department, or a successor agency, to enter into exclusive development agreements on four projects before March 1, 2004. Provides that this subsection expires March 1, 2004. SECTION 2. Amends Chapter 361A, Transportation Code, by adding Sections 361.003 and 361.005, as follows: Sec. 361.003. REGIONAL MOBILITY AUTHORITY. (a) Authorizes the commission by order to authorize the creation of a regional mobility authority for the purposes of constructing, maintaining, and operating a turnpike project in a region of this state. (b) Provides that the governing body of a regional mobility authority is a board of directors consisting of representatives of political subdivisions in each county in which a turnpike project is proposed to be located. Requires the commissioners court of each county of the authority to appoint two directors to the board. Requires the governor to appoint one director to the board who is required to serve as the presiding officer of the board. (c) Requires the commissioners court of each county of the authority that contains an operating turnpike project to appoint certain additional directors. (d) Prohibits a regional mobility authority from constructing, maintaining, or operating a turnpike project in a county that, on November 6, 2001: was part of a regional tollway authority; or operated a project under Chapter 284. (e) Sets forth guidelines regarding a regional mobility authority. (f) Authorizes the commission to grant or loan funds for the construction, maintenance, or operation of a turnpike project under this section in accordance with the provisions of this chapter or other law. (g) Requires a regional mobility authority each year, if determines that it has surplus revenue from turnpike projects, to reduce tolls, spend the surplus revenue on other transportation projects in the region in accordance with Subsection (h), or deposit the surplus revenue to the credit of the Texas Mobility Fund. (h) Authorizes a regional mobility authority, consistent with other law and commission rule, and in accordance with Subsection (g), to spend surplus revenue on other transportation projects by performing certain actions. (i) Authorizes the commission by order to convert a segment of the free state highway system to a turnpike project and transfer that segment to a regional mobility authority under certain conditions. (j) Provides that, to the extent of a conflict between this section and Section 361.189, this section prevails. (k) Defines "governmental entity," "surplus revenue," and "transportation project. (l) Requires the commission to adopt rules to implement this section. Sec. 361.005. TRANSFER OF BOARD'S POWERS AND DUTIES. Provides that the powers and duties of the board of directors of the Texas Turnpike Authority (board) under this chapter or other law are transferred to the commission. Provides that a reference in law to the board is a reference to the commission. SECTION 3. Amends Section 361.184(b), Transportation Code, to delete language authorizing the board of directors of the Texas Turnpike Authority (authority) to transfer, or direct the authority to transfer, into the project revolving fund money from money received from the state highway fund if the advances are repaid as required by Section 52b, Article III, Texas Constitution. Makes a conforming change. SECTION 4. Amends Section 361.191, Transportation Code, to authorize the department to provide for the expenditure of money for the cost of the acquisition, construction, maintenance, or operation of a turnpike project by the authority. Authorizes the department to require the authority to repay money provided under this section from toll revenue or other sources on terms established by the commission. Requires money repaid as required by the department to be deposited to the credit of the fund from which the money was provided. Provides that money deposited as required by this section is exempt from the application of Section 403.095, Government Code. Deletes text requiring the state highway fund, if money from the fund is spent under this section, to be repaid from tolls or other turnpike revenue. SECTION 5. Amends Section 366.174(b), Transportation Code, to authorize an authority to transfer into its revolving fund money received from the state highway fund, rather than advances authorized under Section 52b, Article III, Texas Constitution. SECTION 6. Amends Section 366.301(c), Transportation Code, to authorize the commission or department to require money contributed by the commission or department (rather than money spent from the state highway fund) under this section to be repaid from tolls or other revenue of the turnpike project or system on which the money was spent. Makes conforming changes. SECTION 7. Repealers from the Transportation Code: Sections 361.031(b) - (e) (regarding Texas Turnpike Authority); Section 361.031(g); Sections 361.032 (Board of Authority) - 361.037 (Professional Information; Definition of Responsibility); and Sections 362.004 (Agreements Between Authority and Department) and 362.005 (Issuance of Bonds by Authority). SECTION 8. (a) Provides that Section 222.103, Transportation Code, as amended by this Act, applies only to cost participation by the Texas Department of Transportation in the acquisition, construction, maintenance, or operation of a toll facility that occurs on or after the effective date of this Act. Provides that cost participation by the Texas Department of Transportation in the acquisition, construction, maintenance, or operation of a toll facility under Section 222.103, Transportation Code, that occurred before the effective date of this Act is governed by Section 222.103 of that code, including any requirement of repayment, as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. (b) Provides that Section 361.184(b), Transportation Code, as amended by this Act, applies only to a transfer of money from the state highway fund by or at the direction of the board of directors of the Texas Turnpike Authority division of the Texas Department of Transportation under Section 361.184, Transportation Code, that occurs on or after the effective date of this Act. Provides that a transfer of money from the state highway fund under Section 361.184, Transportation Code, that occurred before the effective date of this Act is governed by Section 361.184 of that code, including any requirement of repayment, as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. (c) Provides that Section 361.191, Transportation Code, as amended by this Act, applies only to an expenditure of money for the acquisition, construction, maintenance, or operation of a turnpike project that is provided by the Texas Department of Transportation under that section on or after the effective date of this Act. Provides that an expenditure of money by the Texas Department of Transportation under Section 361.191, Transportation Code, that was provided before the effective date of this Act is governed by Section 361.191 of that code, including any requirement of repayment, as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. (d) Provides that Section 366.174(b), Transportation Code, as amended by this Act, applies only to the transfer of money received from the state highway fund by a regional tollway authority to the authority's revolving fund under Section 366.174 of that code on or after the effective date of this Act. Provides that a transfer of money to the revolving fund of the authority under Section 366.174, Transportation Code, that occurred before the effective date of this Act is governed by Section 366.174 of that code, including any requirement of repayment, as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. (e) Provides that Section 366.301(c), Transportation Code, as amended by this Act, applies only to an obligation or expense incurred by the Texas Transportation Commission or the Texas Department of Transportation under Section 366.301 of that code on or after the effective date of this Act. Provides that an obligation or expense incurred by the Texas Transportation Commission or the Texas Department of Transportation under Section 366.301, Transportation Code, imposed before the effective date of this Act is governed by Section 366.301 of that code, including any requirement of repayment, as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 9. (a) Provides that this Act takes effect: on the date on which the constitutional amendment proposed by S.J.R. No. 16, 77th Legislature, Regular Session, 2001, takes effect; and only if S.B. No. 4, 77th Legislature, Regular Session, 2001, is enacted and becomes law. (b) Provides that if the constitutional amendment proposed by S.J.R. No. 16 is not approved by the voters, or if S.B. No. 4 does not become law, this Act has no effect. SECTION 10. (a) Provides that, on the effective date of this Act, the board of directors of the Texas Turnpike Authority division of the Texas Department of Transportation is abolished and on that date, all powers, duties, obligations, rights, contracts, leases, records, employees, and real or personal property of the board are transferred to the Texas Transportation Commission. Requires unspent and unobligated appropriations and other funds under the control of the board to be transferred to the Texas Transportation Commission. Authorizes, before that date, the board with the agreement of the commission to transfer any records, employees, or real or personal property of the board to the commission in preparation for the transfer provided for in this section. (b) Provides that the abolishment of the board of directors of the Texas Turnpike Authority division of the Texas Department of Transportation does not affect the validity of a right, privilege, or obligation accrued, a contract or acquisition made, any liability incurred, a permit or license issued, a penalty, forfeiture, or punishment assessed, a rule adopted, a proceeding, investigation, or remedy begun, a decision made, or other action taken by or in connection with the board. (c) Provides that all rules, policies, procedures, and decisions of the board of directors of the Texas Turnpike Authority division of the Texas Department of Transportation are continued in effect as rules, policies, procedures, and decisions of the Texas Transportation Commission until superseded by a rule or other appropriate action of the commission. (d) Provides that any action or proceeding before the board of directors of the Texas Turnpike Authority division of the Texas Department of Transportation is transferred without change in status to the Texas Transportation Commission, and the commission assumes, without a change in status, the position of the board in any action or proceeding to which the board is a party. (e) Requires, if S.B. No. 4, 77th Legislature, Regular Session, 2001, is enacted and becomes law, all unspent and unobligated appropriations and other funds transferred to the Texas Transportation Commission under Subsection (a) of this section to be transferred to the Texas Mobility Fund on the effective date of S.B. No. 4.