SB-342 Text

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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.