By:  Krusee                                                       H.B. No. 2704



A BILL TO BE ENTITLED

AN ACT

relating to certain contractual authority of local governments to 
construct, maintain or operate toll or nontoll 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 a new Section 791.033, to read as follows:
	Sec. 791.033.  Contracts to Construct, Maintain or Operate 
Facilities on the State Highway System.
	(a)  A local government may, within any applicable 
constitutional limitation, agree to 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 
improvement or facility on the State highway system by such local 
government within its boundaries or as a continuation of such 
improvement or facility within the boundaries of adjacent local 
governments.
	(b)  To make payments under an agreement under this section, 
a local government may:
		(1)  pledge revenues from any available source 
including payments received under agreements with the Texas 
Department of Transportation including agreements executed 
pursuant to 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).          
	(c)  The term of an agreement under this section may not 
exceed 40 years.
	(d)  Any election required to permit action under subsection 
(b) must be held in conformance with the Election Code or other law 
applicable to the local government.
	(e)  In connection with an agreement, a county or 
municipality may exercise any of the rights or powers of the 
governing body of an issuer under Chapter 1371, Government Code.
	(f)  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 local governments 
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, including any 
charter of a home-rule municipality, this section shall prevail and 
control.  The local governments 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.