73R10561 DRH-D
By Ellis, Leedom, et al. S.B. No. 242
Substitute the following for S.B. No. 242:
By Bosse C.S.S.B. No. 242
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of Texas Turnpike Authority projects to a
1-3 county or local government corporation and to the administration of
1-4 those projects.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 410, Acts of the 53rd Legislature,
1-7 Regular Session, 1953 (Article 6674v, Vernon's Texas Civil
1-8 Statutes), is amended by adding Sections 12c and 12d to read as
1-9 follows:
1-10 Sec. 12c. TRANSFER OF TURNPIKE PROJECT. (a) This section
1-11 applies to a county, or a local government corporation serving a
1-12 county, with a population of more than 1.5 million, according to
1-13 the most recent federal decennial census, as to which the
1-14 Authority, the Texas Transportation Commission, and the governor
1-15 approve the transfer of a Turnpike Project as being in the best
1-16 interests of 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
1-24 Project under Subsection (b) of this section must provide for the
2-1 discharge and final payment or redemption of all of the Authority's
2-2 outstanding bonded indebtedness issued for the Turnpike Project
2-3 being leased, sold, or conveyed.
2-4 (d) A Turnpike Project that is leased, sold, or conveyed
2-5 under Subsection (b) of this section is not eligible to become a
2-6 part of the state highway system until all obligations, including
2-7 refunding obligations, that are payable from or secured by revenues
2-8 of the Turnpike Project or the system of pooled projects of which
2-9 the Turnpike Project is a part, are discharged and finally paid or
2-10 redeemed.
2-11 (e) An agreement for the lease, sale, or conveyance of a
2-12 Turnpike Project under this section shall be submitted to the
2-13 attorney general for approval as a part of the records of
2-14 proceedings relating to the issuance of bonds of the county or
2-15 local government corporation. If the attorney general determines
2-16 that the agreement is in accordance with law, the attorney general
2-17 shall approve the agreement and deliver to the Texas Transportation
2-18 Commission a copy of the legal opinion of the attorney general
2-19 stating that approval.
2-20 Sec. 12d. SUCCESSOR AGENCY TO AUTHORITY. The following are
2-21 considered successor agencies to the Texas Turnpike Authority for
2-22 purposes of Article III, Section 52-b, of the Texas Constitution:
2-23 (1) a county or local government corporation that
2-24 leases, buys, or receives a Turnpike Project under Section 12c of
2-25 this Act; and
2-26 (2) a county, or a local government corporation
2-27 serving a county, with a population of more than 1.5 million,
3-1 according to the most recent federal decennial census, that
3-2 constructs a toll road, toll bridge, or Turnpike Project.
3-3 SECTION 2. Section 20b, Chapter 410, Acts of the 53rd
3-4 Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
3-5 Civil Statutes), is amended to read as follows:
3-6 Sec. 20b. Use of surplus revenues. (a) Except as provided
3-7 by Subsection (b) of this section, the <The> Board may use or
3-8 pledge the surplus revenues of a turnpike project for the payment
3-9 of costs, including the principal of or interest on bonds, of
3-10 another turnpike project other than a project financed under
3-11 Section 20a of this Act under terms, conditions, or pledges made by
3-12 resolution of the Board. However, the Board may not take an action
3-13 under this section that violates, impairs, or is inconsistent with
3-14 the provisions of a bond resolution, trust agreement, or indenture
3-15 governing the use of the surplus revenues.
3-16 (b) Except as provided by Subsection (c) of this section,
3-17 the surplus revenues generated by a Turnpike Project that is under
3-18 construction or operated by the Authority on January 1, 1993, may
3-19 not be used for a purpose other than:
3-20 (1) the costs associated with the construction,
3-21 expansion, or maintenance of the project generating the revenues;
3-22 or
3-23 (2) transfers to the Texas Turnpike Authority
3-24 Feasibility Study fund.
3-25 (c) The Board may use revenues from a project described by
3-26 Subsection (b) of this section for a purpose authorized by this Act
3-27 other than the purposes described by that subsection if:
4-1 (1) the Authority obtains permission of the
4-2 commissioners court of each county in which the project is located;
4-3 or
4-4 (2) an agreement between the Authority and a county or
4-5 local government corporation created by the county for the lease,
4-6 sale, or other conveyance of the Turnpike Project permits the
4-7 revenue to be used for other purposes.
4-8 SECTION 3. Sections 7 and 7(a), Chapter 304, Acts of the
4-9 50th Legislature, Regular Session, 1947 (Article 6795b-1, Vernon's
4-10 Texas Civil Statutes), are amended to read as follows:
4-11 Sec. 7. Except as provided by Article 6674v-6, Revised
4-12 Statutes, the powers herein granted may be carried out by such
4-13 counties or local government corporations created in such counties
4-14 under the Texas Transportation Corporation Act (Article 1528l,
4-15 Vernon's Texas Civil Statutes), and the projects may be acquired,
4-16 constructed, improved, maintained, <and> operated, and pooled and
4-17 tolls and charges fixed and maintained without the consent,
4-18 approval, supervision or regulation of any commission, department,
4-19 bureau, agency, or officer of the State of Texas, provided,
4-20 however, that nothing in Article 6672, Revised Statutes, or this
4-21 Section shall be construed to prevent the Texas <State Highway and
4-22 Public> Transportation Commission from operating and maintaining
4-23 the project or contributing to the cost of <such> acquisition,
4-24 construction, improvement, pooling, operation, and maintenance
4-25 under such provisions as may be agreed to by the county or local
4-26 government corporation and the Texas Department of Transportation
4-27 which are not inconsistent with the rights of bondholders or the
5-1 rights of any agency, person, firm or corporation then operating
5-2 the project under lease or contract with the county or local
5-3 government corporation. The Texas <State Highway and Public>
5-4 Transportation Commission shall have authority without further
5-5 legislative enactment to make such provision for and contributions
5-6 toward acquisition, construction, improvement, pooling, operation,
5-7 and maintenance of the project as it may see fit, and to lease the
5-8 project under such terms not inconsistent with the provisions of
5-9 the bond resolution or trust indenture as may be agreed upon with
5-10 the county or local government corporation, and to declare the
5-11 project or any part thereof to be a part of the State Highway
5-12 System and to operate the project or such part thereof as a part of
5-13 the State Highway System, provided, however, that such declaration
5-14 may be made and such operation undertaken only to the extent that
5-15 property and contract rights in the project and in the bonds are
5-16 not unfavorably affected thereby. When all of the bonds and
5-17 interest thereon that are payable from or secured by revenues of
5-18 the project shall have been paid, or a sufficient amount for the
5-19 payment of all bonds and the interest thereon to maturity shall
5-20 have been set aside in a trust fund for the benefit of the
5-21 bondholders and shall continue to be held for that purpose, the
5-22 project shall become a part of the State Highway System and shall
5-23 be maintained by the Texas <State Highway and Public>
5-24 Transportation Commission, free of tolls.
5-25 Sec. 7(a). The county is hereby authorized to accept from
5-26 the United States Government or any of its departments or agencies
5-27 or from the State of Texas or any of its departments or agencies,
6-1 any contributions or assistance available from such source or
6-2 sources in connection with the acquisition, construction,
6-3 improvement, maintenance, pooling, and operation of such project
6-4 and to enter into agreements with one or any of them in reference
6-5 to the acquisition, construction, improvement, maintenance,
6-6 pooling, and operation of the project.
6-7 SECTION 4. Section 4A, Texas Transportation Corporation Act
6-8 (Article 1528l, Vernon's Texas Civil Statutes), is amended by
6-9 adding Subsections (g), (h), and (i) to read as follows:
6-10 (g) The governing body of a local government may assume for
6-11 the local government the powers and duties of a local government
6-12 corporation that has been created by the local government. A local
6-13 government that assumes the powers and duties of a local government
6-14 corporation also assumes all of the assets and liabilities of the
6-15 corporation. The powers, duties, assets, and liabilities of a
6-16 local government corporation created by more than one local
6-17 government may be assumed by a local government only if each
6-18 creating local government so agrees.
6-19 (h) A local government corporation is a governmental unit
6-20 within the meaning of Section 101.001(2), Civil Practice and
6-21 Remedies Code, and the operations of a local government corporation
6-22 are governmental and not proprietary functions.
6-23 (i) The local government that creates a local government
6-24 corporation may establish and enforce traffic and other public
6-25 safety rules on a toll road, toll bridge, or turnpike of the
6-26 corporation. If more than one local government creates a local
6-27 government corporation, the local governments may jointly establish
7-1 and enforce traffic and other public safety rules.
7-2 SECTION 5. Subsections (a) and (b), Article 6674v-6, Revised
7-3 Statutes, are amended to read as follows:
7-4 (a) A governmental or private entity, other than a county
7-5 with a population of more than 1.5 <2.4> million, according to the
7-6 most recent federal census, and other than a local government
7-7 corporation created by a county with a population of more than 1.5
7-8 million, according to the most recent federal census, under the
7-9 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
7-10 Civil Statutes), may not begin construction of a toll road, toll
7-11 bridge, or turnpike without the approval of the Texas <State
7-12 Highway and Public> Transportation Commission if the toll road,
7-13 toll bridge, or turnpike is to become a part of the state highway
7-14 system. When deciding whether to approve a proposed toll road,
7-15 toll bridge, or turnpike project, the commission shall consider:
7-16 (1) the feasibility of effectively integrating the
7-17 toll road, toll bridge, or turnpike into the state highway system;
7-18 and
7-19 (2) the ability of the Texas <State> Department of
7-20 <Highways and Public> Transportation to construct any connecting
7-21 roads necessary for the toll road, toll bridge, or turnpike to
7-22 generate sufficient revenue to pay the debt incurred for its
7-23 construction.
7-24 (b) Any bonds of a county, municipality, or political
7-25 subdivision (other than a county with a population greater than 1.5
7-26 million, <2,100,000> according to the most recent <preceding>
7-27 federal census, or a local government corporation created under the
8-1 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
8-2 Civil Statutes), in such a county) or any nonprofit corporation
8-3 acting on behalf of a county, municipality, or political
8-4 subdivision, payable in whole or in part from revenues derived from
8-5 the ownership or operation of a toll road, toll bridge, or turnpike
8-6 must be reviewed by the Texas <State Highway and Public>
8-7 Transportation Commission.
8-8 SECTION 6. (a) This section applies to:
8-9 (1) a local government corporation created under the
8-10 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
8-11 Civil Statutes) serving a county with a population of more than 2.4
8-12 million, according to the most recent federal decennial census; and
8-13 (2) a county with a population of more than 2.4
8-14 million, according to the most recent federal decennial census,
8-15 operating under Chapter 304, Acts of the 50th Legislature, Regular
8-16 Session, 1947 (Article 6795b-1, Vernon's Texas Civil Statutes).
8-17 (b) A local government corporation or county shall set goals
8-18 for the awarding of contracts to disadvantaged businesses for each
8-19 project it operates, maintains, or constructs that are consistent
8-20 with federal requirements on federal money used in highway
8-21 construction and maintenance and the goals adopted by the Texas
8-22 Department of Transportation under Article 6669c, Revised Statutes.
8-23 The goals must apply to any contract awarded that is associated
8-24 with a project, including contracts for construction, the issuance
8-25 of bonds, and the use of professional services.
8-26 (c) For purposes of this section, "disadvantaged business"
8-27 has the meaning assigned by Section 351.1035(a), Local Government
9-1 Code.
9-2 SECTION 7. The importance of this legislation and the
9-3 crowded condition of the calendars in both houses create an
9-4 emergency and an imperative public necessity that the
9-5 constitutional rule requiring bills to be read on three several
9-6 days in each house be suspended, and this rule is hereby suspended,
9-7 and that this Act take effect and be in force from and after its
9-8 passage, and it is so enacted.