79R12465 MTB-F


By:  Krusee                                                       H.B. No. 2704

Substitute the following for H.B. No. 2704:                                   

By:  Phillips                                                 C.S.H.B. No. 2704



A BILL TO BE ENTITLED

AN ACT

relating to the authority of local governments to enter into 
certain agreements for the construction, maintenance, or operation 
of toll or nontoll projects or facilities on the state highway 
system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 791, Government Code, is 
amended by adding Section 791.033 to read as follows:
	Sec. 791.033.  CONTRACTS TO CONSTRUCT, MAINTAIN, OR OPERATE 
FACILITIES ON STATE HIGHWAY SYSTEM.  (a)  In this section, "state 
highway system" means the highways in this state included in the 
plan providing for a system of state highways prepared under 
Section 201.103, Transportation Code.
	(b)  A local government may enter into and make payments 
under an agreement with another local government for the design, 
development, financing, construction, maintenance, operation, 
extension, expansion, or improvement of a toll or nontoll project 
or facility on the state highway system located within the 
boundaries of the local government or, as a continuation of the 
project or facility, within the boundaries of an adjacent local 
government.
	(c)  An agreement under this section must be approved by the 
Texas Department of Transportation.
	(d)  Notwithstanding Section 791.011(d), to make payments 
under an agreement under this section, a local government may:
		(1)  pledge revenue from any available source, 
including payments received under an agreement with the Texas 
Department of Transportation under Section 222.104, Transportation 
Code;
		(2)  pledge, levy, and collect taxes to the extent 
permitted by law; or
		(3)  provide for a combination of Subdivisions (1) and 
(2).          
	(e)  The term of an agreement under this section may not 
exceed 40 years.
	(f)  Any election required to permit action under this 
section must be held in conformance with the Election Code or other 
law applicable to the local government.
	(g)  In connection with an agreement under this section, a 
county or municipality may exercise any of the rights and powers 
granted to the governing body of an issuer under Chapter 1371.
	(h)  This section is wholly sufficient authority for the 
execution of agreements, the pledge of revenues, taxes, or any 
combination of revenues and taxes, and the performance of other 
acts and procedures authorized by this section by a local 
government without reference to any other provision of law or any 
restriction or limitation contained in those provisions, except as 
specifically provided by this section.  To the extent of any 
conflict or inconsistency between this section and any other law, 
this section shall prevail and control.  A local government may use 
any law not in conflict with this section to the extent convenient 
or necessary to carry out any power or authority, expressed or 
implied, granted by this section.
	SECTION 2.  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.