1-1 By: Ellis, Leedom, Harris of Dallas S.B. No. 242
1-2 (In the Senate - Filed February 2, 1993; February 3, 1993,
1-3 read first time and referred to Committee on State Affairs;
1-4 February 15, 1993, reported favorably by the following vote: Yeas
1-5 12, Nays 0; February 15, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the transfer of Texas Turnpike Authority projects to a
1-24 county or local government corporation and to the administration
1-25 and financing of those projects.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Chapter 410, Acts of the 53rd Legislature,
1-28 Regular Session, 1953 (Article 6674v, Vernon's Texas Civil
1-29 Statutes), is amended by adding Section 12c to read as follows:
1-30 Sec. 12c. TRANSFER OF TURNPIKE PROJECT. (a) The Authority
1-31 may lease, sell, or otherwise convey a Turnpike Project to a county
1-32 or a local government corporation created under the Texas
1-33 Transportation Corporation Act (Article 1528l, Vernon's Texas Civil
1-34 Statutes). A county or a local government corporation may lease,
1-35 buy, or otherwise receive a Turnpike Project.
1-36 (b) An agreement to lease, sell, or convey a Turnpike
1-37 Project under Subsection (a) of this section must provide for the
1-38 discharge and final payment or redemption of all of the Authority's
1-39 outstanding bonded indebtedness issued for the Turnpike Project
1-40 being leased, sold, or conveyed.
1-41 (c) A Turnpike Project that is leased, sold, or conveyed
1-42 under Subsection (a) of this section is not eligible to become a
1-43 part of the state highway system until all obligations, including
1-44 refunding obligations, that are payable from or secured by revenues
1-45 of the Turnpike Project or the system of pooled projects of which
1-46 the Turnpike Project is a part are discharged and finally paid or
1-47 redeemed.
1-48 (d) An agreement for the lease, sale, or conveyance of a
1-49 Turnpike Project under this section shall be submitted to the
1-50 attorney general for approval as a part of the records of
1-51 proceedings relating to the issuance of bonds of the county or
1-52 local government corporation. If the attorney general determines
1-53 that the agreement is in accordance with law, the attorney general
1-54 shall approve the agreement and deliver to the Texas Transportation
1-55 Commission a copy of the legal opinion of the attorney general
1-56 stating that approval.
1-57 (e) A county or local government corporation that leases,
1-58 buys, or receives a Turnpike Project under Subsection (a) of this
1-59 section is a successor agency to the Authority for purposes of
1-60 Article III, Section 52-b, of the Texas Constitution.
1-61 SECTION 2. Sections 7 and 7(a), Chapter 304, Acts of the
1-62 50th Legislature, 1947 (Article 6795b-1, Vernon's Texas Civil
1-63 Statutes), are amended to read as follows:
1-64 Sec. 7. Except as provided by Article 6674v-6, Revised
1-65 Statutes, the powers herein granted may be carried out by such
1-66 counties or by local government corporations created under the
1-67 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
1-68 Civil Statutes), and the projects may be acquired, constructed,
2-1 improved, maintained, <and> operated, and pooled and tolls and
2-2 charges fixed and maintained without the consent, approval,
2-3 supervision, or regulation of any commission, department, bureau,
2-4 agency, or officer of the State of Texas, provided, however, that
2-5 nothing in Article 6672, Revised Statutes, or this Section shall be
2-6 construed to prevent the Texas <State Highway and Public>
2-7 Transportation Commission from operating and maintaining the
2-8 project or contributing to the cost of acquisition, construction,
2-9 improvement, pooling, <such> operation, and maintenance under such
2-10 provisions as may be agreed to by the county or local government
2-11 corporation and the Texas Department of Transportation which are
2-12 not inconsistent with the rights of bondholders or the rights of
2-13 any agency, person, firm, or corporation then operating the project
2-14 under lease or contract with the county or local government
2-15 corporation. The Texas <State Highway and Public> Transportation
2-16 Commission shall have authority without further legislative
2-17 enactment to make such provision for and contributions toward
2-18 acquisition, construction, improvement, pooling, operation, and
2-19 maintenance of the project as it may see fit, and to lease the
2-20 project under such terms not inconsistent with the provisions of
2-21 the bond resolution or trust indenture as may be agreed upon with
2-22 the county or local government corporation, and to declare the
2-23 project or any part thereof to be a part of the State Highway
2-24 System and to operate the project or such part thereof as a part of
2-25 the State Highway System, provided, however, that such declaration
2-26 may be made and such operation undertaken only to the extent that
2-27 property and contract rights in the project and in the bonds are
2-28 not unfavorably affected thereby. When all of the bonds and
2-29 interest thereon that are payable from or secured by revenues of
2-30 the project shall have been paid, or a sufficient amount for the
2-31 payment of all bonds and the interest thereon to maturity shall
2-32 have been set aside in a trust fund for the benefit of the
2-33 bondholders and shall continue to be held for that purpose, the
2-34 project shall become a part of the State Highway System and shall
2-35 be maintained by the Texas <State Highway and Public>
2-36 Transportation Commission, free of tolls.
2-37 Sec. 7(a). The county is hereby authorized to accept from
2-38 the United States Government or any of its departments or agencies
2-39 or from the State of Texas or any of its departments or agencies,
2-40 any contributions or assistance available from such source or
2-41 sources in connection with the acquisition, construction,
2-42 improvement, maintenance, pooling, and operation of such project
2-43 and to enter into agreements with one or any of them in reference
2-44 to the acquisition, construction, improvement, maintenance,
2-45 pooling, and operation of the project.
2-46 SECTION 3. Section 4A, Texas Transportation Corporation Act
2-47 (Article 1528l, Vernon's Texas Civil Statutes), is amended by
2-48 adding Subsections (g), (h), and (i) to read as follows:
2-49 (g) The governing body of a local government may assume for
2-50 the local government the powers and duties of a local government
2-51 corporation that has been created by the local government. A local
2-52 government that assumes the powers and duties of a local government
2-53 corporation also assumes all of the assets and liabilities of the
2-54 corporation. The powers, duties, assets, and liabilities of a
2-55 local government corporation created by more than one local
2-56 government may be assumed by a local government only if each
2-57 creating local government so agrees.
2-58 (h) A local government corporation is a governmental unit
2-59 within the meaning of Subdivision (2), Section 101.001, Civil
2-60 Practice and Remedies Code, and the operations of a local
2-61 government corporation are governmental and not proprietary
2-62 functions.
2-63 (i) The local government that creates a local government
2-64 corporation may establish and enforce traffic and other public
2-65 safety rules on a toll road, toll bridge, or turnpike of the
2-66 corporation. If more than one local government creates a local
2-67 government corporation, the local governments may jointly establish
2-68 and enforce traffic and other public safety rules.
2-69 SECTION 4. Subsections (a) and (b), Article 6674v-6, Revised
2-70 Statutes, are amended to read as follows:
3-1 (a) A governmental or private entity, other than a county
3-2 with a population of more than 1.5 <2.4> million, according to the
3-3 most recent federal census, and other than a local government
3-4 corporation created under the Texas Transportation Corporation Act
3-5 (Article 1528l, Vernon's Texas Civil Statutes) by a county with a
3-6 population of more than 1.5 million, according to the most recent
3-7 federal census, may not begin construction of a toll road, toll
3-8 bridge, or turnpike without the approval of the Texas <State
3-9 Highway and Public> Transportation Commission if the toll road,
3-10 toll bridge, or turnpike is to become a part of the state highway
3-11 system. When deciding whether to approve a proposed toll road,
3-12 toll bridge, or turnpike project, the commission shall consider:
3-13 (1) the feasibility of effectively integrating the
3-14 toll road, toll bridge, or turnpike into the state highway system;
3-15 and
3-16 (2) the ability of the Texas <State> Department of
3-17 <Highways and Public> Transportation to construct any connecting
3-18 roads necessary for the toll road, toll bridge, or turnpike to
3-19 generate sufficient revenue to pay the debt incurred for its
3-20 construction.
3-21 (b) Any bonds of a county, municipality, or political
3-22 subdivision (other than a county with a population greater than 1.5
3-23 million, <2,100,000> according to the most recent <preceding>
3-24 federal census, or a local government corporation created under the
3-25 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
3-26 Civil Statutes)) or any nonprofit corporation acting on behalf of a
3-27 county, municipality, or political subdivision, payable in whole or
3-28 in part from revenues derived from the ownership or operation of a
3-29 toll road, toll bridge, or turnpike must be reviewed by the Texas
3-30 <State Highway and Public> Transportation Commission.
3-31 SECTION 5. The importance of this legislation and the
3-32 crowded condition of the calendars in both houses create an
3-33 emergency and an imperative public necessity that the
3-34 constitutional rule requiring bills to be read on three several
3-35 days in each house be suspended, and this rule is hereby suspended,
3-36 and that this Act take effect and be in force from and after its
3-37 passage, and it is so enacted.
3-38 * * * * *
3-39 Austin,
3-40 Texas
3-41 February 15,
3-42 1993
3-43 Hon. Bob Bullock
3-44 President of the Senate
3-45 Sir:
3-46 We, your Committee on State Affairs to which was referred S.B.
3-47 No. 242, have had the same under consideration, and I am instructed
3-48 to report it back to the Senate with the recommendation that it do
3-49 pass and be printed.
3-50 Harris of
3-51 Dallas, Chairman
3-52 * * * * *
3-53 WITNESSES
3-54 FOR AGAINST ON
3-55 ___________________________________________________________________
3-56 Name: David A. Griffin x
3-57 Representing: Dallas Reg Mobility
3-58 Coalition
3-59 City: Dallas
3-60 -------------------------------------------------------------------
3-61 FOR AGAINST ON
3-62 ___________________________________________________________________
3-63 Name: Donald Lee x
3-64 Representing: Harris Count Commissioners
3-65 Ct
3-66 City: Houston
3-67 -------------------------------------------------------------------
3-68 Name: Craig Pardue x
3-69 Representing: Dallas County
3-70 City: Dallas
4-1 -------------------------------------------------------------------
4-2 Name: Arnold Oliver x
4-3 Representing: Texas Dept of Transportation
4-4 City: Austin
4-5 -------------------------------------------------------------------
4-6 Name: Ed Shaddock x
4-7 Representing: Texas Dept of Transportation
4-8 City: Austin
4-9 -------------------------------------------------------------------
4-10 Name: Steve Stagner x x
4-11 Representing: Consulting Eng Council of
4-12 Texas
4-13 City: Austin
4-14 -------------------------------------------------------------------