79R9381 MTB-D
By: Krusee H.B. No. 2662
A BILL TO BE ENTITLED
AN ACT
relating to construction, maintenance, or operation of a turnpike
project by a private entity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 361.304, Transportation Code, is amended
to read as follows:
Sec. 361.304. LIABILITY FOR PRIVATE OBLIGATIONS. (a) The
department may not incur a financial obligation for a private
entity that constructs, maintains, or operates a turnpike project.
The state or a political subdivision of the state is not liable for
any financial or other obligations of a turnpike project solely
because a private entity constructs, finances, or operates any part
of the project.
(b) Subsection (a) does not prohibit the department, a state
agency, or a political subdivision of the state from:
(1) entering into an agreement with a private entity
to design, finance, construct, maintain, repair, operate, extend,
or expand a turnpike project under this chapter; or
(2) providing money, services, or property as provided
by the agreement.
SECTION 2. Section 361.305, Transportation Code, is amended
by adding Subsection (d) to read as follows:
(d) In negotiating the terms of private participation in a
turnpike project under Subsection (a), the department shall ensure
that private equity investors are:
(1) held to the same standards as the department for:
(A) design and construction of a project,
including use of materials;
(B) operation of a project; and
(C) maintenance of a project;
(2) entitled to the same waivers, suspensions, or
modifications of local, state, and federal standards as the
department if approved by the appropriate state entity; and
(3) entitled to the same process for approval of a
waiver, suspension, or modification of standards by a state or
federal entity as the department.
SECTION 3. Section 361.307, Transportation Code, is amended
by adding Subsection (c) to read as follows:
(c) A private entity may enter into a performance contract
with a governmental agency or entity that specifies measurable
outcomes related to the success of the governmental agency or
entity in providing services under this chapter.
SECTION 4. Subchapter I, Chapter 361, Transportation Code,
is amended by adding Section 361.308 to read as follows:
Sec. 361.308. IMMUNITY FROM LIABILITY. A private entity
that develops, designs, finances, constructs, maintains, or
operates a turnpike project under this chapter, including Section
361.305, that is an essential governmental function is liable for
damages only to the extent that the department would be liable if
the department were performing the function.
SECTION 5. Section 370.302, Transportation Code, is amended
by adding Subsection (h) to read as follows:
(h) An authority or a private entity may enter into a
performance contract with a governmental agency or entity that
specifies measurable outcomes related to the success of the
governmental agency or entity in providing services under this
chapter.
SECTION 6. Section 370.310, Transportation Code, is amended
to read as follows:
Sec. 370.310. LIABILITY FOR PRIVATE OBLIGATIONS. (a) An
authority may not incur a financial obligation for a private entity
that constructs, maintains, or operates a transportation project.
The authority or a political subdivision of the state is not liable
for any financial or other obligation of a transportation project
solely because a private entity constructs, finances, or operates
any part of the project.
(b) Subsection (a) does not prohibit an authority, a state
agency, or a political subdivision of the state from:
(1) entering into an agreement with a private entity
to design, finance, construct, maintain, repair, operate, extend,
or expand a turnpike project under this chapter; or
(2) providing money, services, or property as provided
by the agreement.
SECTION 7. Section 370.311, Transportation Code, is amended
by adding Subsection (d) to read as follows:
(d) In negotiating the terms of private participation in a
turnpike project under Subsection (a), an authority shall ensure
that private equity investors are:
(1) held to the same standards as the department for:
(A) design and construction of a project,
including use of materials;
(B) operation of a project; and
(C) maintenance of a project;
(2) entitled to the same waivers, suspensions, or
modifications of local, state, and federal standards as the
department if approved by the appropriate state entity; and
(3) entitled to the same process for approval of a
waiver, suspension, or modification of standards by a state or
federal entity as the department.
SECTION 8. Subchapter G, Chapter 370, Transportation Code,
is amended by adding Section 370.317 to read as follows:
Sec. 370.317. IMMUNITY FROM LIABILITY. A private entity
that develops, designs, finances, constructs, maintains, or
operates a turnpike project under this chapter that is an essential
governmental function is liable for damages only to the extent that
the department would be liable if the department were performing
the function.
SECTION 9. The changes in law made by this Act to Chapters
361 and 370, Transportation Code, apply only to an agreement
entered into on or after the effective date of this Act. An
agreement entered into before the effective date of this Act is
governed by the law applicable to the agreement immediately before
the effective date of this Act, and that law is continued in effect
for that purpose.
SECTION 10. This Act takes effect September 1, 2005.