BILL ANALYSIS

 

 

Senate Research Center                                                                                                     H.B. 2650

79R12464 MTB-F                                                                                              By: Krusee (Brimer)

                                                                                                 Transportation & Homeland Security

                                                                                                                                            5/16/2005

                                                                                                                                           Engrossed

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

H.B. 2650 allows a local government to enter into an agreement with Texas Department of Transportation, a regional mobility authority, or a private entity to assist in the financing of the construction, maintenance, and operations of a turnpike project located in the government’s jurisdiction.  In return for that financial assistance, the local government may receive a percentage of the turnpike project revenues.

 

A local government may use any revenue available for road purposes to provide financing of the project.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Subchapter I, Chapter 361, Transportation Code, by adding Section 361.308, as follows:

 

Sec. 361.308.  AGREEMENTS WITH LOCAL GOVERNMENTS.  (a)  Defines "local government."

 

(b)  Authorizes a local government to enter into an agreement with the Texas Department of Transportation (TxDOT) or a private entity under which the local government assists in the financing of the construction, maintenance, and operation of a turnpike project located in the government's jurisdiction in return for a percentage of the revenue from the project. 

 

(c)  Authorizes a local government to use any revenue available for road purposes, including bond and tax proceeds, to provide financing under Subsection (b). 

 

(d) Requires an agreement under this section between a local government and a private entity to be approved by TxDOT.

 

(e) Requires revenue received by a local government under an agreement under this section to be used for transportation. 

 

SECTION 2.  Amends Subchapter G, Chapter 370, Transportation Code, by adding Section 370.317, as follows:

 

Sec. 370.317.  AGREEMENTS WITH LOCAL GOVERNMENTS. (a) Defines "local government." 

 

(b) Authorizes a local government to enter into an agreement with an authority or a private entity under which the local government assists in the financing of the construction, maintenance, and operation of a turnpike project located in the government's jurisdiction in return for a percentage of the revenue from the project. 

 

(c) Authorizes a local government to use any revenue available for road purposes, including bond and tax proceeds, to provide financing under subsection (b). 

 

(d) Requires an agreement under this section between a local government and a private entity to be approved by TxDOT.

 

(e) Requires the revenue received by a local government under an agreement under this section to be used for transportation purposes. 

 

SECTION 3.  Effective date: September 1, 2005.