Amend CSHB 2702 (Senate committee printing) by adding the 
following appropriately numbered SECTIONS to Article 2 of the bill 
and renumbering subsequent SECTIONS as appropriate:
	SECTION __.  Section 201.1055, Transportation Code, is 
amended to read as follows:
	Sec. 201.1055.  AGREEMENTS WITH PRIVATE ENTITIES.  (a)
Notwithstanding any other law, including Subchapter A, Chapter 
2254, Government Code, Chapters 2165, 2166, and 2167, Government 
Code, and Sections 202.052, 202.053, 203.051, 203.052, and 223.001 
of this code, the department and a private entity that offers the 
best value to the state may enter into an agreement for the [that 
includes]:
		(1)  acquisition, [both] design, [and] construction, 
or renovation, including site development, of a building or other 
facility required to support department operations [district 
office headquarters facility] located on real property owned or 
acquired by the department [in a county with a population of 3.3 
million or more]; or
		(2)  acquisition from the private entity of real 
property, a building, or other facility required to support 
department operations that is constructed on the real property in 
exchange for department-owned real property, including any 
improvements [a lease of department-owned real property in a 
district that includes a county with a population of 3.3 million or 
more to the private entity;
		[(3)  a provision authorizing the private entity to 
construct and retain ownership of a building on property leased to 
the entity under Subdivision (2); and
		[(4)  a provision under which the department agrees to 
enter into an agreement to lease with an option or options to 
purchase a building constructed on property leased to the entity 
under Subdivision (2)].
	(b)  A project described by this section that is not wholly 
paid for by an exchange of department-owned real property may be 
financed in accordance with Section 1232.111, Government Code.
	(c)  Notwithstanding Section 202.024, the commission may 
authorize the executive director to execute a deed exchanging 
department-owned real property under Subsection (a)(2).
	(d)  The commission shall notify the Bond Review Board and 
Texas Public Finance Authority of the proposed transaction not less 
than 45 days before the date the commission signs an agreement under 
this section providing for the exchange of department-owned real 
under Subsection (a)(2).
	(e)  An agreement under this section providing for the 
exchange of department-owned real property under Subsection (a)(2) 
that has an appraised value greater than the appraised value of real 
property and improvements acquired by the department under the 
agreement must require the private entity to compensate the 
department for the difference. Any compensation paid by a private 
entity must be deposited to the credit of the state highway fund and 
is exempt from the application of Section 403.095, Government Code.

	SECTION __.  Section 221.001(1), Transportation Code, is 
amended to read as follows:
		(1)  "Highway" includes a public road or part of a 
public road and a bridge, culvert, building, or other necessary 
structure related to a public road.
	SECTION __.  Section 2166.302, Government Code, is amended 
by amending Subsection (a) and adding Subsection (c) to read as 
follows:
	(a)  Except as provided by Subsections [Subsection] (b) and 
(c), the commission shall adopt uniform general conditions to be 
incorporated into all building construction contracts made by the 
state, including a contract for a project excluded from this 
chapter by Section 2166.003, but not including a contract for a 
project excluded from this chapter by Section 2166.004.
	(c)  Subsection (a) does not apply to a project constructed 
by and for the Texas Department of Transportation.
	SECTION __.  Subchapter C, Chapter 1232, Government Code, is 
amended by adding Section 1232.111 to read as follows:
	Sec. 1232.111.  CERTAIN PROJECTS BY TEXAS DEPARTMENT OF 
TRANSPORTATION.  (a)  The authority may issue and sell obligations 
to finance one or more projects described by Section 201.1055(a), 
Transportation Code.  Notwithstanding Section 1232.108(2), the 
estimated cost of the project must be specified in the General 
Appropriations Act or other law.
	(b)  Any provision of this chapter that relates to the 
issuance or sale of obligations to finance the acquisition or 
construction of a building, including provisions relating to form, 
procedure, repayment, actions that may be taken to ensure that the 
payment of the principal of and interest on the obligations is 
continued without interruption, and other relevant matters, 
applies to the issuance or sale of obligations under this section to 
the extent that the provision may be appropriately made applicable.
	(c)  The legislature may appropriate money from any 
available source, including the state highway fund, to the Texas 
Department of Transportation to make lease payments to the 
authority for space occupied by the department in a building 
acquired or constructed under Section 201.1055(a), Transportation 
Code.