SB 342 Analysis
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S.B. 342
1-1 AN ACT
1-2 relating to the participation of the Texas Department of
1-3 Transportation in the acquisition, construction, maintenance, and
1-4 operation of toll facilities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 222.103, Transportation Code, is amended
1-7 to read as follows:
1-8 Sec. 222.103. COST PARTICIPATION. (a) The department may
1-9 participate, by spending money from any available source, in the
1-10 cost of the acquisition, construction, maintenance, or operation of
1-11 a toll facility of a public or private entity on terms and
1-12 conditions established by the commission. The commission:
1-13 (1) may require the repayment of any money spent by
1-14 the department for the cost of a toll facility of a public entity;
1-15 and
1-16 (2) shall require the repayment of any money spent by
1-17 the department for the cost of a toll facility of a private
1-18 entity[, including requirements for repayment].
1-19 (b) Money repaid as required by the commission shall be
1-20 deposited to the credit of the fund from which the expenditure was
1-21 made. Money deposited as required by this section is exempt from
1-22 the application of Section 403.095, Government Code.
1-23 (c) A bond or other debt obligation issued by a public or
1-24 private entity to finance the cost of a toll facility in which the
1-25 department participates is an obligation of the issuing entity and
2-1 is not an obligation of this state.
2-2 (d) [An entity receiving cost participation from the
2-3 department under this section is a successor agency to the Texas
2-4 Turnpike Authority for the purposes of Section 52-b, Article III,
2-5 Texas Constitution.]
2-6 [(c)] On the request of a member of the legislature, the
2-7 department shall provide the member a status report on all highway
2-8 construction projects, by legislative district, that are under
2-9 contract or awaiting funding. The report shall include projects
2-10 that would be funded in any manner by state, federal, or toll
2-11 funds.
2-12 (e) [(d)] On the request of a member of the legislature, not
2-13 later than the 90th day before the date a loan is granted or an
2-14 expenditure is made by the department for a project under this
2-15 section, the department shall notify each member of the legislature
2-16 that represents any part of the area affected by the project of the
2-17 status of the project and how any other project in any other
2-18 district would be affected.
2-19 (f) This section applies to any participation by the
2-20 department in the cost of a project under Chapter 284, 361, or 366.
2-21 (g) The commission shall adopt rules to implement Subsection
2-22 (a).
2-23 (h) Money granted by the department each federal fiscal year
2-24 under this section may not exceed 30 percent of the obligation
2-25 authority under the federal-aid highway program that is distributed
2-26 to this state in that year.
3-1 (i) Any project that uses money that is granted or loaned
3-2 from constitutionally dedicated funds for the construction or
3-3 maintenance of a project must be let by a competitive bidding
3-4 procedure in which the contract is awarded to the lowest
3-5 responsible bidder.
3-6 (j) Notwithstanding Subsection (i), the Texas Turnpike
3-7 Authority division of the department, or a successor agency, may
3-8 enter into exclusive development agreements on four projects before
3-9 March 1, 2004. This subsection expires March 1, 2004.
3-10 SECTION 2. Subchapter A, Chapter 361, Transportation Code,
3-11 is amended by adding Sections 361.003 and 361.005 to read as
3-12 follows:
3-13 Sec. 361.003. REGIONAL MOBILITY AUTHORITY. (a) The
3-14 commission by order may authorize the creation of a regional
3-15 mobility authority for the purposes of constructing, maintaining,
3-16 and operating a turnpike project in a region of this state.
3-17 (b) The governing body of a regional mobility authority is a
3-18 board of directors consisting of representatives of political
3-19 subdivisions in each county in which a turnpike project is proposed
3-20 to be located. The commissioners court of each county of the
3-21 authority shall appoint two directors to the board. The governor
3-22 shall appoint one director to the board who shall serve as the
3-23 presiding officer of the board.
3-24 (c) The commissioners court of each county of the authority
3-25 that contains an operating turnpike project shall appoint
3-26 additional directors, as follows:
4-1 (1) if only one county of the authority contains an
4-2 operating turnpike project, the commissioners court of that county
4-3 shall appoint two additional directors;
4-4 (2) if two counties of the authority contain an
4-5 operating turnpike project, the commissioners court of each county
4-6 shall each appoint one additional director; and
4-7 (3) if more than two counties of the authority contain
4-8 an operating turnpike project, the commissioners court of each
4-9 county shall each appoint two additional directors.
4-10 (d) A regional mobility authority may not construct,
4-11 maintain, or operate a turnpike project in a county that, on
4-12 November 6, 2001:
4-13 (1) was part of a regional tollway authority; or
4-14 (2) operated a project under Chapter 284.
4-15 (e) A regional mobility authority:
4-16 (1) is a political subdivision of this state for
4-17 purposes of Chapter 101, Civil Practice and Remedies Code;
4-18 (2) is subject to Chapter 552, Government Code;
4-19 (3) is a state governmental body for purposes of
4-20 Chapter 551, Government Code;
4-21 (4) has the powers and duties of a county under
4-22 Subchapter C, Chapter 262, Local Government Code, other than
4-23 Section 262.029 of that subchapter and excepting contracts subject
4-24 to Section 361.231; and
4-25 (5) is a local government for purposes of Subchapters
4-26 D and F, Chapter 271, Local Government Code.
5-1 (f) The commission may grant or loan funds for the
5-2 construction, maintenance, or operation of a turnpike project under
5-3 this section in accordance with the provisions of this chapter or
5-4 other law.
5-5 (g) Each year, if a regional mobility authority determines
5-6 that it has surplus revenue from turnpike projects, it shall reduce
5-7 tolls, spend the surplus revenue on other transportation projects
5-8 in the region in accordance with Subsection (h), or deposit the
5-9 surplus revenue to the credit of the Texas Mobility Fund.
5-10 (h) Consistent with other law and commission rule, and in
5-11 accordance with Subsection (g), a regional mobility authority may
5-12 spend surplus revenue on other transportation projects by:
5-13 (1) assisting in the financing of a toll or toll-free
5-14 transportation project of a governmental entity; or
5-15 (2) with the approval of the commission, constructing
5-16 a toll or toll-free transportation project and, on completion of
5-17 the project, transferring the project to a governmental entity if:
5-18 (A) the governmental entity authorizes the
5-19 regional mobility authority to construct the project and agrees to
5-20 assume all liability and responsibility for the maintenance and
5-21 operation of the project upon its transfer; and
5-22 (B) the project is constructed in compliance
5-23 with all laws applicable to the governmental entity.
5-24 (i) The commission by order may convert a segment of the
5-25 free state highway system to a turnpike project and transfer that
5-26 segment to a regional mobility authority if:
6-1 (1) the commission determines that the proposed
6-2 transfer is an integral part of the region's overall plan to
6-3 improve mobility in the region; and
6-4 (2) the regional mobility authority agrees to assume
6-5 all liability and responsibility for the maintenance and operation
6-6 of the turnpike project on its transfer.
6-7 (j) To the extent of a conflict between this section and
6-8 Section 361.189, this section prevails.
6-9 (k) In this section:
6-10 (1) "Governmental entity" includes a municipality,
6-11 county, the department, or other public entity authorized to
6-12 construct, maintain, and operate a transportation project within
6-13 the region of a regional mobility authority.
6-14 (2) "Surplus revenue" means toll revenue that exceeds
6-15 the regional mobility authority's debt service requirements,
6-16 coverage requirements of any bond indenture, costs of operation and
6-17 maintenance, cost of repair, expansion or improvement of a turnpike
6-18 project, and reserves and reserve funds maintained by the regional
6-19 mobility authority.
6-20 (3) "Transportation project" includes a project or
6-21 type of project described by commission rule.
6-22 (l) The commission shall adopt rules to implement this
6-23 section.
6-24 Sec. 361.005. TRANSFER OF BOARD'S POWERS AND DUTIES.
6-25 (a) The powers and duties of the board under this chapter or other
6-26 law are transferred to the commission.
7-1 (b) A reference in law to the board is a reference to the
7-2 commission.
7-3 SECTION 3. Subsection (b), Section 361.184, Transportation
7-4 Code, is amended to read as follows:
7-5 (b) The board may transfer, or direct the authority to
7-6 transfer, into the project revolving fund money from any
7-7 permissible source, including:
7-8 (1) money from a surplus fund established for a
7-9 turnpike project if the remainder of the surplus fund is not less
7-10 than any minimum amount required by the trust agreement to be
7-11 retained for that project;
7-12 (2) money received under Subchapter I or from a
7-13 transfer of a turnpike project under Subchapter H;
7-14 (3) money received [advances] from the state highway
7-15 fund [if the advances are repaid as required by Section 52-b,
7-16 Article III, Texas Constitution]; and
7-17 (4) contributions or assistance from the United
7-18 States, another state, a political subdivision of this state, the
7-19 United Mexican States, or a political subdivision of the United
7-20 Mexican States.
7-21 SECTION 4. Section 361.191, Transportation Code, is amended
7-22 to read as follows:
7-23 Sec. 361.191. EXPENDITURE OF MONEY AUTHORIZED BY DEPARTMENT
7-24 OF TRANSPORTATION. (a) The Texas Department of Transportation may
7-25 provide for the expenditure of money for the cost of the
7-26 acquisition, construction, maintenance, or operation of a turnpike
8-1 project by the authority. The department may require the authority
8-2 to repay money provided under this section from toll revenue or
8-3 other sources on terms established by the commission.
8-4 (b) Money repaid as required by the department shall be
8-5 deposited to the credit of the fund from which the money was
8-6 provided. Money deposited as required by this section is exempt
8-7 from the application of Section 403.095, Government Code. [If money
8-8 from the state highway fund is spent under this section, the fund
8-9 shall be repaid from tolls or other turnpike revenue.]
8-10 SECTION 5. Subsection (b), Section 366.174, Transportation
8-11 Code, is amended to read as follows:
8-12 (b) An authority may transfer into its revolving fund money
8-13 from any permissible source, including:
8-14 (1) money from a turnpike project if the transfer does
8-15 not diminish the money available for the project or the system, if
8-16 any, of which it is a part to less than an amount required to be
8-17 retained by the bond proceedings pertaining to the project or
8-18 system;
8-19 (2) money received by the authority from any source
8-20 and not otherwise committed, including money from the transfer of a
8-21 turnpike project or system or sale of authority assets;
8-22 (3) money received from the state highway fund
8-23 [advances authorized under Section 52-b, Article III, Texas
8-24 Constitution]; and
8-25 (4) contributions, loans, grants, or assistance from
8-26 the United States, another state, a political subdivision of this
9-1 state, a foreign governmental entity, including the United Mexican
9-2 States or a state of the United Mexican States, a local
9-3 governmental entity, any private enterprise, or any person.
9-4 SECTION 6. Subsection (c), Section 366.301, Transportation
9-5 Code, is amended to read as follows:
9-6 (c) An obligation or expense incurred by the commission or
9-7 department under this section is a part of the cost of the turnpike
9-8 project for which the obligation or expense was incurred. The
9-9 commission or department may require money contributed by the
9-10 commission or department [Money from the state highway fund spent]
9-11 under this section to [must] be repaid from tolls or other revenue
9-12 of the turnpike project or system on which the money [from the
9-13 state highway fund] was spent [expended]. Money repaid as required
9-14 by the commission or department shall be deposited to the credit of
9-15 the fund from which the contribution was made. Money deposited as
9-16 required by this section is exempt from the application of Section
9-17 403.095, Government Code.
9-18 SECTION 7. The following sections of the Transportation Code
9-19 are repealed:
9-20 (1) Subsections (b) through (e), Section 361.031;
9-21 (2) Subsection (g), Section 361.031;
9-22 (3) Sections 361.032 through 361.037; and
9-23 (4) Sections 362.004 and 362.005.
9-24 SECTION 8. (a) Section 222.103, Transportation Code, as
9-25 amended by this Act, applies only to cost participation by the
9-26 Texas Department of Transportation in the acquisition,
10-1 construction, maintenance, or operation of a toll facility that
10-2 occurs on or after the effective date of this Act. Cost
10-3 participation by the Texas Department of Transportation in the
10-4 acquisition, construction, maintenance, or operation of a toll
10-5 facility under Section 222.103, Transportation Code, that occurred
10-6 before the effective date of this Act is governed by Section
10-7 222.103 of that code, including any requirement of repayment, as it
10-8 existed immediately before the effective date of this Act, and the
10-9 former law is continued in effect for that purpose.
10-10 (b) Subsection (b), Section 361.184, Transportation Code, as
10-11 amended by this Act, applies only to a transfer of money from the
10-12 state highway fund by or at the direction of the board of directors
10-13 of the Texas Turnpike Authority division of the Texas Department of
10-14 Transportation under Section 361.184, Transportation Code, that
10-15 occurs on or after the effective date of this Act. A transfer of
10-16 money from the state highway fund under Section 361.184,
10-17 Transportation Code, that occurred before the effective date of
10-18 this Act is governed by Section 361.184 of that code, including any
10-19 requirement of repayment, as it existed immediately before the
10-20 effective date of this Act, and the former law is continued in
10-21 effect for that purpose.
10-22 (c) Section 361.191, Transportation Code, as amended by this
10-23 Act, applies only to an expenditure of money for the acquisition,
10-24 construction, maintenance, or operation of a turnpike project that
10-25 is provided by the Texas Department of Transportation under that
10-26 section on or after the effective date of this Act. An expenditure
11-1 of money by the Texas Department of Transportation under Section
11-2 361.191, Transportation Code, that was provided before the
11-3 effective date of this Act is governed by Section 361.191 of that
11-4 code, including any requirement of repayment, as it existed
11-5 immediately before the effective date of this Act, and the former
11-6 law is continued in effect for that purpose.
11-7 (d) Subsection (b), Section 366.174, Transportation Code, as
11-8 amended by this Act, applies only to the transfer of money received
11-9 from the state highway fund by a regional tollway authority to the
11-10 authority's revolving fund under Section 366.174 of that code on or
11-11 after the effective date of this Act. A transfer of money to the
11-12 revolving fund of the authority under Section 366.174,
11-13 Transportation Code, that occurred before the effective date of
11-14 this Act is governed by Section 366.174 of that code, including any
11-15 requirement of repayment, as it existed immediately before the
11-16 effective date of this Act, and the former law is continued in
11-17 effect for that purpose.
11-18 (e) Subsection (c), Section 366.301, Transportation Code, as
11-19 amended by this Act, applies only to an obligation or expense
11-20 incurred by the Texas Transportation Commission or the Texas
11-21 Department of Transportation under Section 366.301 of that code on
11-22 or after the effective date of this Act. An obligation or expense
11-23 incurred by the Texas Transportation Commission or the Texas
11-24 Department of Transportation under Section 366.301, Transportation
11-25 Code, imposed before the effective date of this Act is governed by
11-26 Section 366.301 of that code, including any requirement of
12-1 repayment, as it existed immediately before the effective date of
12-2 this Act, and the former law is continued in effect for that
12-3 purpose.
12-4 SECTION 9. (a) This Act takes effect:
12-5 (1) on the date on which the constitutional amendment
12-6 proposed by S.J.R. No. 16, 77th Legislature, Regular Session, 2001,
12-7 takes effect; and
12-8 (2) only if S.B. No. 4, 77th Legislature, Regular
12-9 Session, 2001, is enacted and becomes law.
12-10 (b) If the constitutional amendment proposed by S.J.R. No.
12-11 16 is not approved by the voters, or if S.B. No. 4 does not become
12-12 law, this Act has no effect.
12-13 SECTION 10. (a) On the effective date of this Act, the
12-14 board of directors of the Texas Turnpike Authority division of the
12-15 Texas Department of Transportation is abolished. On that date, all
12-16 powers, duties, obligations, rights, contracts, leases, records,
12-17 employees, and real or personal property of the board are
12-18 transferred to the Texas Transportation Commission. Unspent and
12-19 unobligated appropriations and other funds under the control of the
12-20 board shall be transferred to the Texas Transportation Commission.
12-21 Before that date, the board with the agreement of the commission
12-22 may transfer any records, employees, or real or personal property
12-23 of the board to the commission in preparation for the transfer
12-24 provided for in this section.
12-25 (b) The abolishment of the board of directors of the Texas
12-26 Turnpike Authority division of the Texas Department of
13-1 Transportation does not affect the validity of a right, privilege,
13-2 or obligation accrued, a contract or acquisition made, any
13-3 liability incurred, a permit or license issued, a penalty,
13-4 forfeiture, or punishment assessed, a rule adopted, a proceeding,
13-5 investigation, or remedy begun, a decision made, or other action
13-6 taken by or in connection with the board.
13-7 (c) All rules, policies, procedures, and decisions of the
13-8 board of directors of the Texas Turnpike Authority division of the
13-9 Texas Department of Transportation are continued in effect as
13-10 rules, policies, procedures, and decisions of the Texas
13-11 Transportation Commission until superseded by a rule or other
13-12 appropriate action of the commission.
13-13 (d) Any action or proceeding before the board of directors
13-14 of the Texas Turnpike Authority division of the Texas Department of
13-15 Transportation is transferred without change in status to the Texas
13-16 Transportation Commission, and the commission assumes, without a
13-17 change in status, the position of the board in any action or
13-18 proceeding to which the board is a party.
13-19 (e) If S.B. No. 4, 77th Legislature, Regular Session, 2001,
13-20 is enacted and becomes law, all unspent and unobligated
13-21 appropriations and other funds transferred to the Texas
13-22 Transportation Commission under Subsection (a) of this section
13-23 shall be transferred to the Texas Mobility Fund on the effective
13-24 date of S.B. No. 4.
S.B. No. 342
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 342 passed the Senate on
March 1, 2001, by a viva-voce vote; May 21, 2001, Senate refused to
concur in House amendments and requested appointment of Conference
Committee; May 22, 2001, House granted request of the Senate;
May 27, 2001, Senate adopted Conference Committee Report by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 342 passed the House, with
amendments, on May 18, 2001, by a non-record vote; May 22, 2001,
House granted request of the Senate for appointment of Conference
Committee; May 27, 2001, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor
SB 342 Analysis
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