79R12464 MTB-F


By:  Krusee                                                       H.B. No. 2650

Substitute the following for H.B. No. 2650:                                   

By:  Phillips                                                 C.S.H.B. No. 2650



A BILL TO BE ENTITLED

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.