BILL ANALYSIS
Senate Research Center S.B. 149
80R2113 JTS-D By: Carona, Shapiro
Transportation & Homeland Security
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Current law permits certain entities to enter into contracts for toll project development with the private sector. These contracts may have stipulations that would limit the state's ability to maintain or build roads that compete with the contracted toll project. These agreements are termed "non-compete clauses" or "competing facilities agreements." The state's ability to expand and maintain the current road network is limited by these clauses. Agreements which limit the ability of the state to build or maintain roads that compete with tolled highways are detrimental to the overall highway system.
As proposed, S.B. 149 prohibits non-compete clauses from future toll project contractual agreements. This legislation does not affect contracts already in place.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle G, Title 6, Transportation Code, by adding Chapter 371, as follows:
CHAPTER 371. PROVISIONS APPLICABLE TO MORE THAN
ONE TYPE OF TOLL PROJECT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 371.001. DEFINITIONS. Defines "toll project" and "toll project entity."
[Reserves Sections 371.002-371.050 for expansion.]
SUBCHAPTER B. CONTRACT PROVISIONS
Sec. 371.051. NONCOMPETITION PROVISIONS. Prohibits certain contracts from containing provisions that limit ability of a toll project entity or another entity to acquire, design, construct, finance, maintain, or operate transportation infrastructure or requires a toll project entity or another entity to compensate a contracting party for a decline or loss in revenue that is a result of the acquisition, design, construction, financing, maintenance, or operation of transportation infrastructure.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: upon passage or September 1, 2007.