S.B. No. 242
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 of
1-3 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 Sections 12c and 12d to read as
1-8 follows:
1-9 Sec. 12c. TRANSFER OF TURNPIKE PROJECT. (a) This section
1-10 applies to a county, or a local government corporation serving a
1-11 county, or an adjacent county in a joint turnpike authority with a
1-12 county whose population is more than 1.5 million, according to the
1-13 most recent federal decennial census, as to which the Authority,
1-14 the Texas Transportation Commission, and the governor approve the
1-15 transfer of a Turnpike Project as being in the best interests of
1-16 the state and the county.
1-17 (b) The Authority may lease, sell, or otherwise convey a
1-18 Turnpike Project to a county or a local government corporation
1-19 created under the Texas Transportation Corporation Act (Article
1-20 1528l, Vernon's Texas Civil Statutes). A county or a local
1-21 government corporation may lease, buy, or otherwise receive a
1-22 Turnpike Project.
1-23 (c) An agreement to lease, sell, or convey a Turnpike
2-1 Project under Subsection (b) of this section must provide for the
2-2 discharge and final payment or redemption of all of the Authority's
2-3 outstanding bonded indebtedness issued for the Turnpike Project
2-4 being leased, sold, or conveyed.
2-5 (d) A Turnpike Project that is leased, sold, or conveyed
2-6 under Subsection (b) of this section is not eligible to become a
2-7 part of the state highway system until all obligations, including
2-8 refunding obligations, that are payable from or secured by revenues
2-9 of the Turnpike Project or the system of pooled projects of which
2-10 the Turnpike Project is a part are discharged and finally paid or
2-11 redeemed.
2-12 (e) An agreement for the lease, sale, or conveyance of a
2-13 Turnpike Project under this section shall be submitted to the
2-14 attorney general for approval as a part of the records of
2-15 proceedings relating to the issuance of bonds of the county or
2-16 local government corporation. If the attorney general determines
2-17 that the agreement is in accordance with law, the attorney general
2-18 shall approve the agreement and deliver to the Texas Transportation
2-19 Commission a copy of the legal opinion of the attorney general
2-20 stating that approval.
2-21 Sec. 12d. SUCCESSOR AGENCY TO AUTHORITY. The following are
2-22 considered successor agencies to the Texas Turnpike Authority for
2-23 purposes of Article III, Section 52-b, of the Texas Constitution:
2-24 (1) a county or local government corporation that
2-25 leases, buys, or receives a Turnpike Project under Section 12c of
3-1 this Act; and
3-2 (2) a county, or a local government corporation
3-3 serving a county, or an adjacent county in a joint turnpike
3-4 authority with a county whose population is more than 1.5 million,
3-5 according to the most recent federal decennial census, that
3-6 constructs a toll road, toll bridge, or Turnpike Project.
3-7 SECTION 2. Chapter 410, Acts of the 53rd Legislature,
3-8 Regular Session, 1953 (Article 6674v, Vernon's Texas Civil
3-9 Statutes), is amended by adding Section 12e to read as follows:
3-10 Sec. 12e. TEXAS TURNPIKE AUTHORITY PROJECT REVOLVING FUND.
3-11 (a) The Authority may maintain a fund entitled the Texas Turnpike
3-12 Authority Project Revolving Fund. A fund established under this
3-13 section is a revolving fund held in trust separate from other funds
3-14 of the Authority in a banking institution chosen by the Authority.
3-15 (b) The Authority may transfer amounts from any surplus fund
3-16 established for a Turnpike Project to the revolving fund if the
3-17 remaining balance in the surplus fund is not decreased below the
3-18 minimum balance required by any trust agreement for that project.
3-19 (c) The Authority may transfer into the revolving fund
3-20 amounts from any permissible source, including:
3-21 (1) amounts described by Subsection (b) of this
3-22 section;
3-23 (2) amounts received under Section 20a of this Act or
3-24 from a transfer of a project under Section 12c of this Act;
3-25 (3) advances from the Texas Department of
4-1 Transportation authorized under Article III, Section 52-b, of the
4-2 Texas Constitution; and
4-3 (4) contributions or assistance from the federal
4-4 government, other state governments, a political subdivision of
4-5 this state, Mexico, or a political subdivision of Mexico.
4-6 (d) The Authority may use the revolving fund to:
4-7 (1) finance the construction, maintenance, or
4-8 operation of Turnpike Projects authorized by this Act;
4-9 (2) provide matching amounts necessary for federal
4-10 grants or other types of participatory funding;
4-11 (3) provide credit enhancement for bonds issued to
4-12 construct, expand, or improve Turnpike Projects;
4-13 (4) provide security for, or payment of, future or
4-14 existing debt for construction, operation, or maintenance of
4-15 Turnpike Projects;
4-16 (5) borrow money and issue promissory notes or other
4-17 indebtedness payable out of the revolving fund for any purpose
4-18 authorized by this Act; and
4-19 (6) provide for any other reasonable purpose that
4-20 assists in the financing of the Authority as authorized by this
4-21 Act.
4-22 (e) Amounts expended or advanced from the revolving fund for
4-23 a Turnpike Project are considered a part of the cost of the
4-24 project, and the revolving fund must be reimbursed for all amounts
4-25 drawn from the fund that are used for the project.
5-1 SECTION 3. Section 20b, Chapter 410, Acts of the 53rd
5-2 Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
5-3 Civil Statutes), is amended to read as follows:
5-4 Sec. 20b. Use of surplus revenues. (a) Except as provided
5-5 by Subsection (b) of this section, the <The> Board may use or
5-6 pledge the surplus revenues of a turnpike project for the payment
5-7 of costs, including the principal of or interest on bonds, of
5-8 another turnpike project other than a project financed under
5-9 Section 20a of this Act under terms, conditions, or pledges made by
5-10 resolution of the Board. However, the Board may not take an action
5-11 under this section that violates, impairs, or is inconsistent with
5-12 the provisions of a bond resolution, trust agreement, or indenture
5-13 governing the use of the surplus revenues.
5-14 (b) Except as provided by Subsection (c) of this section,
5-15 the surplus revenues generated by a turnpike project that is under
5-16 construction or operated by the Authority on January 1, 1993, may
5-17 not be used for a purpose other than:
5-18 (1) the costs associated with the construction,
5-19 expansion, or maintenance of the project generating the revenues;
5-20 or
5-21 (2) transfers to the Texas Turnpike Authority
5-22 Feasibility Study fund.
5-23 (c) The Board may use revenues from a project described by
5-24 Subsection (b) of this section for a purpose authorized by this Act
5-25 other than the purposes described by that subsection if:
6-1 (1) the Authority obtains permission of the
6-2 commissioners court of each county in which the project is located;
6-3 or
6-4 (2) an agreement between the Authority and a county or
6-5 local government corporation created by the county for the lease,
6-6 sale, or other conveyance of the turnpike project permits the
6-7 revenue to be used for other purposes.
6-8 SECTION 4. Sections 7 and 7(a), Chapter 304, Acts of the
6-9 50th Legislature, 1947 (Article 6795b-1, Vernon's Texas Civil
6-10 Statutes), are amended to read as follows:
6-11 Sec. 7. Except as provided by Article 6674v-6, Revised
6-12 Statutes, the powers herein granted may be carried out by such
6-13 counties or local government corporations created in such counties
6-14 under the Texas Transportation Corporation Act (Article 1528l,
6-15 Vernon's Texas Civil Statutes), and the projects may be acquired,
6-16 constructed, improved, maintained, <and> operated, and pooled and
6-17 tolls and charges fixed and maintained without the consent,
6-18 approval, supervision, or regulation of any commission, department,
6-19 bureau, agency, or officer of the State of Texas, provided,
6-20 however, that nothing in Article 6672, Revised Statutes, or this
6-21 Section shall be construed to prevent the Texas <State Highway and
6-22 Public> Transportation Commission from operating and maintaining
6-23 the project or contributing to the cost of acquisition,
6-24 construction, improvement, pooling, <such> operation, and
6-25 maintenance under such provisions as may be agreed to by the county
7-1 or local government corporation and the Texas Department of
7-2 Transportation which are not inconsistent with the rights of
7-3 bondholders or the rights of any agency, person, firm, or
7-4 corporation then operating the project under lease or contract with
7-5 the county or local government corporation. The Texas <State
7-6 Highway and Public> Transportation Commission shall have authority
7-7 without further legislative enactment to make such provision for
7-8 and contributions toward acquisition, construction, improvement,
7-9 pooling, operation, and maintenance of the project as it may see
7-10 fit, and to lease the project under such terms not inconsistent
7-11 with the provisions of the bond resolution or trust indenture as
7-12 may be agreed upon with the county or local government corporation,
7-13 and to declare the project or any part thereof to be a part of the
7-14 State Highway System and to operate the project or such part
7-15 thereof as a part of the State Highway System, provided, however,
7-16 that such declaration may be made and such operation undertaken
7-17 only to the extent that property and contract rights in the project
7-18 and in the bonds are not unfavorably affected thereby. When all of
7-19 the bonds and interest thereon that are payable from or secured by
7-20 revenues of the project shall have been paid, or a sufficient
7-21 amount for the payment of all bonds and the interest thereon to
7-22 maturity shall have been set aside in a trust fund for the benefit
7-23 of the bondholders and shall continue to be held for that purpose,
7-24 the project shall become a part of the State Highway System and
7-25 shall be maintained by the Texas <State Highway and Public>
8-1 Transportation Commission, free of tolls.
8-2 Sec. 7(a). The county is hereby authorized to accept from
8-3 the United States Government or any of its departments or agencies
8-4 or from the State of Texas or any of its departments or agencies,
8-5 any contributions or assistance available from such source or
8-6 sources in connection with the acquisition, construction,
8-7 improvement, maintenance, pooling, and operation of such project
8-8 and to enter into agreements with one or any of them in reference
8-9 to the acquisition, construction, improvement, maintenance,
8-10 pooling, and operation of the project.
8-11 SECTION 5. Section 4A, Texas Transportation Corporation Act
8-12 (Article 1528l, Vernon's Texas Civil Statutes), is amended by
8-13 adding Subsections (g), (h), and (i) to read as follows:
8-14 (g) The governing body of a local government may assume for
8-15 the local government the powers and duties of a local government
8-16 corporation that has been created by the local government. A local
8-17 government that assumes the powers and duties of a local government
8-18 corporation also assumes all of the assets and liabilities of the
8-19 corporation. The powers, duties, assets, and liabilities of a
8-20 local government corporation created by more than one local
8-21 government may be assumed by a local government only if each
8-22 creating local government so agrees.
8-23 (h) A local government corporation is a governmental unit
8-24 within the meaning of Subdivision (2), Section 101.001, Civil
8-25 Practice and Remedies Code, and the operations of a local
9-1 government corporation are governmental and not proprietary
9-2 functions.
9-3 (i) The local government that creates a local government
9-4 corporation may establish and enforce traffic and other public
9-5 safety rules on a toll road, toll bridge, or turnpike of the
9-6 corporation. If more than one local government creates a local
9-7 government corporation, the local governments may jointly establish
9-8 and enforce traffic and other public safety rules.
9-9 SECTION 6. Subsections (a) and (b), Article 6674v-6, Revised
9-10 Statutes, are amended to read as follows:
9-11 (a) A governmental or private entity, other than a county
9-12 with a population of more than 1.5 <2.4> million, according to the
9-13 most recent federal census, and other than a local government
9-14 corporation created by a county with a population of more than 1.5
9-15 million, according to the most recent federal census, under the
9-16 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
9-17 Civil Statutes), may not begin construction of a toll road, toll
9-18 bridge, or turnpike without the approval of the Texas <State
9-19 Highway and Public> Transportation Commission if the toll road,
9-20 toll bridge, or turnpike is to become a part of the state highway
9-21 system. When deciding whether to approve a proposed toll road,
9-22 toll bridge, or turnpike project, the commission shall consider:
9-23 (1) the feasibility of effectively integrating the
9-24 toll road, toll bridge, or turnpike into the state highway system;
9-25 and
10-1 (2) the ability of the Texas <State> Department of
10-2 <Highways and Public> Transportation to construct any connecting
10-3 roads necessary for the toll road, toll bridge, or turnpike to
10-4 generate sufficient revenue to pay the debt incurred for its
10-5 construction.
10-6 (b) Any bonds of a county, municipality, or political
10-7 subdivision (other than a county with a population greater than 1.5
10-8 million, <2,100,000> according to the most recent <preceding>
10-9 federal census, or a local government corporation created under the
10-10 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
10-11 Civil Statutes) in such a county) or any nonprofit corporation
10-12 acting on behalf of a county, municipality, or political
10-13 subdivision, payable in whole or in part from revenues derived from
10-14 the ownership or operation of a toll road, toll bridge, or turnpike
10-15 must be reviewed by the Texas <State Highway and Public>
10-16 Transportation Commission.
10-17 SECTION 7. (a) This section applies to:
10-18 (1) a local government corporation created under the
10-19 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
10-20 Civil Statutes) serving a county with a population of more than 2.4
10-21 million, according to the most recent federal decennial census; and
10-22 (2) a county with a population of more than 2.4
10-23 million, according to the most recent federal decennial census,
10-24 operating under Chapter 304, Acts of the 50th Legislature, 1947
10-25 (Article 6795b-1, Vernon's Texas Civil Statutes).
11-1 (b) A local government corporation or county shall set and
11-2 make a good faith effort to meet or exceed goals for awarding
11-3 contracts and subcontracts associated with a project it operates,
11-4 maintains, or constructs to historically underutilized businesses.
11-5 The goals shall equal or exceed the federal requirement on federal
11-6 money used in highway construction and maintenance and the goals
11-7 adopted by the Texas Department of Transportation under Article
11-8 6669c, Revised Statutes. The goals shall apply to the total value
11-9 of all contracts and subcontracts awarded, including contracts and
11-10 subcontracts for construction, maintenance, operations, supplies,
11-11 services, materials, equipment, professional services, the issuance
11-12 of bonds, and bond counsel.
11-13 (c) In this section, "historically underutilized business"
11-14 means:
11-15 (1) a corporation formed for the purpose of making a
11-16 profit in which at least 51 percent of all classes of the shares of
11-17 stock or other equitable securities is owned, managed, and in daily
11-18 operations is controlled by one or more persons who have been
11-19 historically underutilized because of their identification as
11-20 members of certain groups, including African Americans, Hispanic
11-21 Americans, women, Asian Pacific Americans, and Native Americans,
11-22 who have suffered the effects of discriminatory practices or
11-23 similar insidious circumstances over which they have no control;
11-24 (2) a sole proprietorship formed for the purpose of
11-25 making a profit that is 100 percent owned and in daily operations
12-1 is controlled by a person described by Subdivision (1) of this
12-2 subsection;
12-3 (3) a partnership formed for the purpose of making a
12-4 profit in which at least 51 percent of the assets and interest in
12-5 the partnership is owned by one or more persons described by
12-6 Subdivision (1) of this subsection and who also have proportionate
12-7 interest in the control, daily operation, and management of the
12-8 partnership's affairs;
12-9 (4) a joint venture in which each entity in the joint
12-10 venture is a historically underutilized business; or
12-11 (5) a supplier contract between a historically
12-12 underutilized business and a prime contractor under which the
12-13 historically underutilized business is directly involved in the
12-14 manufacture or distribution of the supplies or materials or
12-15 otherwise warehouses and ships the supplies or materials.
12-16 SECTION 8. The importance of this legislation and the
12-17 crowded condition of the calendars in both houses create an
12-18 emergency and an imperative public necessity that the
12-19 constitutional rule requiring bills to be read on three several
12-20 days in each house be suspended, and this rule is hereby suspended,
12-21 and that this Act take effect and be in force from and after its
12-22 passage, and it is so enacted.