79R4857 JTS-D
By: Baxter H.B. No. 2237
A BILL TO BE ENTITLED
AN ACT
relating to certain prerequisites for the Texas Department of
Transportation or a regional mobility authority to construct or
finance a new toll project or convert a segment of a free state
highway to a toll project.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 361, Transportation Code,
is amended by adding Section 361.1015 to read as follows:
Sec. 361.1015. FEASIBILITY STUDY REQUIRED. The department
may not determine to undertake a turnpike project under Section
361.101 unless:
(1) the department conducts or authorizes a
feasibility study; and
(2) the study determines that the proposed project is
financially viable.
SECTION 2. Subchapter E, Chapter 361, Transportation Code,
is amended by adding Sections 361.181 and 361.182 to read as
follows:
Sec. 361.181. EXPENDITURES FOR FEASIBILITY STUDIES. (a)
Notwithstanding Section 361.179 or any other provision of this
chapter to the contrary, the department may pay the expenses of
studying the cost and feasibility and any other expenses relating
to the preparation and issuance of turnpike revenue bonds for a
proposed turnpike project by:
(1) using available revenue derived from an existing
transportation project;
(2) borrowing money and issuing bonds or entering into
a loan agreement payable out of available revenue anticipated to be
derived from the operation of an existing turnpike project; or
(3) pledging to the payment of the bonds or a loan
agreement available revenue anticipated to be derived from the
operation of turnpike projects or revenue available to the
authority from another source.
(b) The department's use of a financing method is subject to
the prior approval of the commission.
(c) Money spent under this section for a proposed turnpike
project must be reimbursed to the turnpike project from which the
money was spent from the proceeds of turnpike revenue bonds issued
for the construction of the proposed project.
Sec. 361.182. FEASIBILITY STUDY FUND. (a) The department
may maintain a feasibility study fund. The fund is a revolving fund
held in trust by a banking institution chosen by the department or,
at the discretion of the commission, in trust in the state treasury
outside the general revenue fund. The fund shall be kept separate
from the money for any turnpike project.
(b) The department may transfer an amount from a surplus
fund established for a turnpike project to the feasibility study
fund if the remainder of the surplus fund after the transfer is not
less than any minimum amount required by the trust agreement to be
retained for that project.
(c) Money in the feasibility study fund may be used only to
pay the expenses of studying the cost and feasibility and any other
expenses relating to:
(1) the preparation and issuance of turnpike revenue
bonds for the construction of a proposed turnpike project;
(2) the financing of the improvement, extension, or
expansion of an existing turnpike project; and
(3) private participation, as authorized by
Subchapter I, in the financing of a proposed turnpike project, the
refinancing of an existing turnpike project, or the improvement,
extension, or expansion of a turnpike project.
(d) The department must authorize a feasibility study,
subject to the prior approval of the commission.
(e) Money spent under Subsection (c) for a proposed turnpike
project must be reimbursed from the proceeds of turnpike revenue
bonds issued for, or other proceeds that may be used for, the
construction, improvement, extension, expansion, or operation of
the project.
(f) For a purpose described by Subsection (c), the
department may borrow money and issue promissory notes or other
interest-bearing evidences of indebtedness payable out of its
feasibility study fund, pledging money in the fund or to be placed
in the fund.
SECTION 3. Sections 362.0041(a) and (g), Transportation
Code, are amended to read as follows:
(a) Except as provided in Subsection [Subsections] (d) [and
(g)], the commission may by order convert a segment of the free
state highway system to a toll facility if:
(1) it determines that the conversion will improve
overall mobility in the region or is the most feasible and economic
means to accomplish necessary expansion, improvements, or
extensions to that segment of the state highway system; and
(2) the conversion is approved by:
(A) the commissioners court of each county in
which the segment is located; and
(B) a majority of the voters in each county in
which the segment is located, at a county election called for that
purpose by the commissioners court.
(g) For the purposes of this section, a segment is a segment
of the free state highway system if the department has used public
money, including money from the state highway fund, the Texas
mobility fund, or money from an agreement with a local governmental
entity, to pay for:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the highway;
(2) acquisition of real property, rights-of-way,
property rights, easements, or interests; or
(3) placement of the highway in operation and expenses
related to the initial operation of the highway. [The commission
may only convert a segment of the state highway system under this
section if the conversion is approved by the commissioners court of
each county within which the segment is located.]
SECTION 4. The heading to Section 370.035, Transportation
Code, is amended to read as follows:
Sec. 370.035. [CONVERSION AND] TRANSFER OF CONVERTED STATE
HIGHWAY SYSTEM PROJECTS.
SECTION 5. Section 370.035(a), Transportation Code, is
amended to read as follows:
(a) The commission by order may [convert a segment of the
free state highway system to a turnpike project and] transfer [that
segment] to an authority a segment of the free state highway system
converted to a turnpike project under Section 362.0041[,] or [may
transfer] an existing turnpike project that is part of the state
highway system, whether previously tolled or not, to an authority
if:
(1) the commission determines that the proposed
transfer is an integral part of the region's overall plan to improve
mobility in the region;
(2) the commission determines that the public has a
reasonable alternative route on nontoll roads;
(3) the authority agrees to assume all liability and
responsibility for the maintenance and operation of the turnpike
project on its transfer; and
(4) the transfer is approved by the governor.
SECTION 6. Subchapter C, Chapter 370, Transportation Code,
is amended by adding Section 370.074 to read as follows:
Sec. 370.074. FEASIBILITY STUDY REQUIRED. An authority may
not begin construction on a turnpike project unless:
(1) the authority conducts or authorizes a feasibility
study; and
(2) the study determines that the proposed project is
financially viable.
SECTION 7. Section 362.0041(b), Transportation Code, is
repealed.
SECTION 8. If any provision of this Act or its application
to any person or circumstance is held invalid, the invalidity does
not affect other provisions or applications of this Act that can be
given effect without the invalid provision or application, and to
this end the provisions of this Act are severable.
SECTION 9. 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.