By: Ellis, Leedom S.B. No. 242
Harris of Dallas
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the transfer of Texas Turnpike Authority projects to a
1-2 county or local government corporation and to the administration
1-3 and financing of those projects.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 410, Acts of the 53rd Legislature,
1-6 Regular Session, 1953 (Article 6674v, Vernon's Texas Civil
1-7 Statutes), is amended by adding Section 12c to read as follows:
1-8 Sec. 12c. TRANSFER OF TURNPIKE PROJECT. (a) The Authority
1-9 may lease, sell, or otherwise convey a Turnpike Project to a county
1-10 or a local government corporation created under the Texas
1-11 Transportation Corporation Act (Article 1528l, Vernon's Texas Civil
1-12 Statutes). A county or a local government corporation may lease,
1-13 buy, or otherwise receive a Turnpike Project.
1-14 (b) An agreement to lease, sell, or convey a Turnpike
1-15 Project under Subsection (a) of this section must provide for the
1-16 discharge and final payment or redemption of all of the Authority's
1-17 outstanding bonded indebtedness issued for the Turnpike Project
1-18 being leased, sold, or conveyed.
1-19 (c) A Turnpike Project that is leased, sold, or conveyed
1-20 under Subsection (a) of this section is not eligible to become a
1-21 part of the state highway system until all obligations, including
1-22 refunding obligations, that are payable from or secured by revenues
1-23 of the Turnpike Project or the system of pooled projects of which
2-1 the Turnpike Project is a part are discharged and finally paid or
2-2 redeemed.
2-3 (d) An agreement for the lease, sale, or conveyance of a
2-4 Turnpike Project under this section shall be submitted to the
2-5 attorney general for approval as a part of the records of
2-6 proceedings relating to the issuance of bonds of the county or
2-7 local government corporation. If the attorney general determines
2-8 that the agreement is in accordance with law, the attorney general
2-9 shall approve the agreement and deliver to the Texas Transportation
2-10 Commission a copy of the legal opinion of the attorney general
2-11 stating that approval.
2-12 (e) A county or local government corporation that leases,
2-13 buys, or receives a Turnpike Project under Subsection (a) of this
2-14 section is a successor agency to the Authority for purposes of
2-15 Article III, Section 52-b, of the Texas Constitution.
2-16 SECTION 2. Sections 7 and 7(a), Chapter 304, Acts of the
2-17 50th Legislature, 1947 (Article 6795b-1, Vernon's Texas Civil
2-18 Statutes), are amended to read as follows:
2-19 Sec. 7. Except as provided by Article 6674v-6, Revised
2-20 Statutes, the powers herein granted may be carried out by such
2-21 counties or by local government corporations created under the
2-22 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
2-23 Civil Statutes), and the projects may be acquired, constructed,
2-24 improved, maintained, <and> operated, and pooled and tolls and
2-25 charges fixed and maintained without the consent, approval,
3-1 supervision, or regulation of any commission, department, bureau,
3-2 agency, or officer of the State of Texas, provided, however, that
3-3 nothing in Article 6672, Revised Statutes, or this Section shall be
3-4 construed to prevent the Texas <State Highway and Public>
3-5 Transportation Commission from operating and maintaining the
3-6 project or contributing to the cost of acquisition, construction,
3-7 improvement, pooling, <such> operation, and maintenance under such
3-8 provisions as may be agreed to by the county or local government
3-9 corporation and the Texas Department of Transportation which are
3-10 not inconsistent with the rights of bondholders or the rights of
3-11 any agency, person, firm, or corporation then operating the project
3-12 under lease or contract with the county or local government
3-13 corporation. The Texas <State Highway and Public> Transportation
3-14 Commission shall have authority without further legislative
3-15 enactment to make such provision for and contributions toward
3-16 acquisition, construction, improvement, pooling, operation, and
3-17 maintenance of the project as it may see fit, and to lease the
3-18 project under such terms not inconsistent with the provisions of
3-19 the bond resolution or trust indenture as may be agreed upon with
3-20 the county or local government corporation, and to declare the
3-21 project or any part thereof to be a part of the State Highway
3-22 System and to operate the project or such part thereof as a part of
3-23 the State Highway System, provided, however, that such declaration
3-24 may be made and such operation undertaken only to the extent that
3-25 property and contract rights in the project and in the bonds are
4-1 not unfavorably affected thereby. When all of the bonds and
4-2 interest thereon that are payable from or secured by revenues of
4-3 the project shall have been paid, or a sufficient amount for the
4-4 payment of all bonds and the interest thereon to maturity shall
4-5 have been set aside in a trust fund for the benefit of the
4-6 bondholders and shall continue to be held for that purpose, the
4-7 project shall become a part of the State Highway System and shall
4-8 be maintained by the Texas <State Highway and Public>
4-9 Transportation Commission, free of tolls.
4-10 Sec. 7(a). The county is hereby authorized to accept from
4-11 the United States Government or any of its departments or agencies
4-12 or from the State of Texas or any of its departments or agencies,
4-13 any contributions or assistance available from such source or
4-14 sources in connection with the acquisition, construction,
4-15 improvement, maintenance, pooling, and operation of such project
4-16 and to enter into agreements with one or any of them in reference
4-17 to the acquisition, construction, improvement, maintenance,
4-18 pooling, and operation of the project.
4-19 SECTION 3. Section 4A, Texas Transportation Corporation Act
4-20 (Article 1528l, Vernon's Texas Civil Statutes), is amended by
4-21 adding Subsections (g), (h), and (i) to read as follows:
4-22 (g) The governing body of a local government may assume for
4-23 the local government the powers and duties of a local government
4-24 corporation that has been created by the local government. A local
4-25 government that assumes the powers and duties of a local government
5-1 corporation also assumes all of the assets and liabilities of the
5-2 corporation. The powers, duties, assets, and liabilities of a
5-3 local government corporation created by more than one local
5-4 government may be assumed by a local government only if each
5-5 creating local government so agrees.
5-6 (h) A local government corporation is a governmental unit
5-7 within the meaning of Subdivision (2), Section 101.001, Civil
5-8 Practice and Remedies Code, and the operations of a local
5-9 government corporation are governmental and not proprietary
5-10 functions.
5-11 (i) The local government that creates a local government
5-12 corporation may establish and enforce traffic and other public
5-13 safety rules on a toll road, toll bridge, or turnpike of the
5-14 corporation. If more than one local government creates a local
5-15 government corporation, the local governments may jointly establish
5-16 and enforce traffic and other public safety rules.
5-17 SECTION 4. Subsections (a) and (b), Article 6674v-6, Revised
5-18 Statutes, are amended to read as follows:
5-19 (a) A governmental or private entity, other than a county
5-20 with a population of more than 1.5 <2.4> million, according to the
5-21 most recent federal census, and other than a local government
5-22 corporation created under the Texas Transportation Corporation Act
5-23 (Article 1528l, Vernon's Texas Civil Statutes) by a county with a
5-24 population of more than 1.5 million, according to the most recent
5-25 federal census, may not begin construction of a toll road, toll
6-1 bridge, or turnpike without the approval of the Texas <State
6-2 Highway and Public> Transportation Commission if the toll road,
6-3 toll bridge, or turnpike is to become a part of the state highway
6-4 system. When deciding whether to approve a proposed toll road,
6-5 toll bridge, or turnpike project, the commission shall consider:
6-6 (1) the feasibility of effectively integrating the
6-7 toll road, toll bridge, or turnpike into the state highway system;
6-8 and
6-9 (2) the ability of the Texas <State> Department of
6-10 <Highways and Public> Transportation to construct any connecting
6-11 roads necessary for the toll road, toll bridge, or turnpike to
6-12 generate sufficient revenue to pay the debt incurred for its
6-13 construction.
6-14 (b) Any bonds of a county, municipality, or political
6-15 subdivision (other than a county with a population greater than 1.5
6-16 million, <2,100,000> according to the most recent <preceding>
6-17 federal census, or a local government corporation created under the
6-18 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
6-19 Civil Statutes)) or any nonprofit corporation acting on behalf of a
6-20 county, municipality, or political subdivision, payable in whole or
6-21 in part from revenues derived from the ownership or operation of a
6-22 toll road, toll bridge, or turnpike must be reviewed by the Texas
6-23 <State Highway and Public> Transportation Commission.
6-24 SECTION 5. The importance of this legislation and the
6-25 crowded condition of the calendars in both houses create an
7-1 emergency and an imperative public necessity that the
7-2 constitutional rule requiring bills to be read on three several
7-3 days in each house be suspended, and this rule is hereby suspended,
7-4 and that this Act take effect and be in force from and after its
7-5 passage, and it is so enacted.