H.B. No. 2650




AN ACT

relating to local government participation in the financing of 
turnpike projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter I, Chapter 361, Transportation Code, 
is amended by adding Section 361.308 to read as follows:
	Sec. 361.308.  AGREEMENTS WITH LOCAL GOVERNMENTS. (a) In 
this section, "local government" means a:
		(1)  county, municipality, special district, or other 
political subdivision of this state;
		(2)  local government corporation created under 
Subchapter D, Chapter 431; or
		(3)  combination of two or more entities described by 
Subdivision (1) or (2).
	(b)  A local government may enter into an agreement with the 
department 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)  A local government may use any revenue available for 
road purposes, including bond and tax proceeds, to provide 
financing under Subsection (b).
	(d)  An agreement under this section between a local 
government and a private entity must be approved by the department.
	(e)  Revenue received by a local government under an 
agreement under this section must be used for transportation 
purposes.
	SECTION 2.  Subchapter G, Chapter 370, Transportation Code, 
is amended by adding Section 370.317 to read as follows:
	Sec. 370.317.  AGREEMENTS WITH LOCAL GOVERNMENTS. (a) In 
this section, "local government" means a:
		(1)  county, municipality, special district, or other 
political subdivision of this state;
		(2)  local government corporation created under 
Subchapter D, Chapter 431; or
		(3)  combination of two or more entities described by 
Subdivision (1) or (2).
	(b)  A local government may 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)  A local government may use any revenue available for 
road purposes, including bond and tax proceeds, to provide 
financing under Subsection (b).
	(d)  An agreement under this section between a local 
government and a private entity must be approved by the department.
	(e)  Revenue received by a local government under an 
agreement under this section must be used for transportation 
purposes.
	SECTION 3.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 2650 was passed by the House on April 
19, 2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 2650 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor