By:  Phillips (Senate Sponsor - Staples)                          H.B. No. 2137
	(In the Senate - Received from the House April 27, 2005; 
April 29, 2005, read first time and referred to Committee on 
Transportation and Homeland Security; May 20, 2005, reported 
adversely, with favorable Committee Substitute by the following 
vote:  Yeas 8, Nays 0; May 20, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2137                                   By:  Staples

A BILL TO BE ENTITLED
AN ACT
relating to the construction or improvement of buildings by the Texas Department of Transportation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. 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) both] design and construction, including site development, of a district office headquarters facility or other facilities required to support department operations located on real property owned or leased by the department [in a county with a population of 3.3 million or more; [(2) 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 must be financed in accordance with Section 1232.111, Government Code. SECTION 2. 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 3. 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 4. 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, except that the estimated cost of the district office headquarters facility located in Harris County is $40 million. (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 constructed under Section 201.1055(a), Transportation Code. SECTION 5. The changes in law made by this Act to Section 2166.302, Government Code, apply only to a contract for which the Texas Department of Transportation first advertises or otherwise solicits bids, proposals, offers, or qualifications on or after the effective date of this Act. A contract for which the Texas Department of Transportation first advertised or otherwise solicited bids, proposals, offers, or qualifications before that date is governed by the law in effect when the first advertisement or solicitation was given, and the former law is continued in effect for that purpose. SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.
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