Texas Senate Approves Agreement on Toll Road Moratorium Bill

By Adam L. Cataldo

May 25 (Bloomberg) -- The Texas Senate today approved a bill to impose a two-year moratorium on allowing private companies develop and operate toll roads in the state, a spokesman for the bill's sponsor said.

The Senate accepted a bill worked out by a conference committee to resolve differences between versions from the two legislative houses. The measure still requires approval by the state House of Representatives before it is sent to Governor Rick Perry.

"We think it's a very good bill, a very good compromise for everybody,'' said Jason Smith, a legislative aide to Senator Tommy Williams, a Republican from the Houston suburb of The Woodlands who is the measure's primary sponsor. "We are hopeful the governor will sign it,'' Smith said.

A call to Perry's office for comment wasn't returned. On May 18, Perry vetoed a bill imposing a moratorium, saying the measure might have cost the state billions of dollars in federal transportation funding.

The latest bill would exempt 14 projects from the moratorium. It also would require local authorities to pay the state for rights of way on any projects they want to build, Smith said. The bill Perry vetoed would have given that land to the local authorities.

The legislative action comes amid public opposition to privately operated toll roads. Texas is among a group of states including Pennsylvania and Virginia that are considering leasing existing toll roads or let private companies finance and operate new toll roads.