By: Ogden S.B. No. 991

A BILL TO BE ENTITLED

AN ACT

relating to the cessation of tolls by toll project entities in certain circumstances.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 228.104(a), Transportation Code, is amended to read as follows:

(a) The principal of, interest on, and any redemption premium on bonds issued by the commission under this subchapter are payable solely from:

(1) the revenue of the toll project or system for which the bonds are issued, including tolls pledged to pay the bonds;

(2) the proceeds of bonds issued for the project or system;

(3) the amounts deposited in a debt service reserve fund as required by the trust agreement securing bonds issued for the project or system;

(4) amounts received under a credit agreement relating to the project or system for which the bonds are issued; and

(5) [surplus revenue of another project or system as authorized by Section 228.006; and

[(6)] amounts received by the department:

(A) as pass-through tolls under Section 222.104;

(B) under an agreement with a local governmental entity entered into under Section 228.254;

(C) under other agreements with a local governmental entity relating to the project or system for which the bonds are issued; and

(D) under a comprehensive development agreement entered into under Section 223.201.

SECTION 2. Section 228.105, Transportation Code, is amended to read as follows:

Sec. 228.105. SOURCES OF PAYMENT OF AND SECURITY FOR TOLL REVENUE BONDS. Notwithstanding any other provisions of this subchapter, toll revenue bonds issued by the commission may:

(1) be payable from and secured by:

(A) payments made under an agreement with a local governmental entity as provided by Section 228.254;

(B) the proceeds of bonds issued for the toll project or system; or

(C) amounts deposited in a debt service reserve fund as required by the trust agreement securing bonds issued for the project or system; [or

[(D) surplus revenue of another toll project or system as authorized by Section 228.006;] and

(2) state on their faces any pledge of revenue or taxes and any security for the bonds under the agreement.

SECTION 3. Section 366.113(a), Transportation Code, is amended to read as follows:

(a) The principal of, interest on, and any redemption premium on bonds issued by an authority are payable solely from:

(1) the revenue of the turnpike project or system for which the bonds are issued, including tolls pledged to pay the bonds;

(2) payments made under an agreement with the commission or a local governmental entity as provided by Subchapter G;

(3) money derived from any other source available to the authority, other than money derived from a turnpike project that is not part of the same system or money derived from a different system[, except to the extent that the surplus revenue of a turnpike project or system has been pledged for that purpose]; and

(4) amounts received under a credit agreement relating to the turnpike project or system for which the bonds are issued.

SECTION 4. Section 370.113(a), Transportation Code, is amended to read as follows:

(a) The principal of, interest on, and any redemption premium on bonds issued by an authority are payable solely from:

(1) the revenue of the transportation project for which the bonds are issued;

(2) payments made under an agreement with the commission, the department, or other governmental entity as provided by Subchapter G;

(3) money derived from any other source available to the authority, other than money derived from a transportation project that is not part of the same system or money derived from a different system, except to the extent that the surplus revenue of a transportation project or system, other than a turnpike project, has been pledged for that purpose; and

(4) amounts received under a credit agreement relating to the transportation project for which the bonds are issued.

SECTION 5. Section 370.174(a), Transportation Code, is amended to read as follows:

(a) Each year, if an authority determines that it has surplus revenue from transportation projects, other than turnpike projects, it shall reduce tolls, spend the surplus revenue on other transportation projects in the counties of the authority in accordance with Subsection (b), or deposit the surplus revenue to the credit of the Texas Mobility Fund.

SECTION 6. Subtitle G, Title 6, Transportation Code, is amended by adding Chapter 371 to read as follows: CHAPTER 371. PROVISIONS APPLICABLE TO MORE THAN ONE TYPE OF TOLL PROJECT

Sec. 371.001. CESSATION OF TOLLS. (a) In this section:

(1) "Toll project" means a toll project described by Section 201.001(b), regardless of whether the toll project:

(A) is a part of the state highway system; or

(B) is subject to the jurisdiction of the department.

(2) "Toll project entity" means an entity authorized by law to acquire, design, construct, finance, operate, and maintain a toll project, including:

(A) the department under Chapter 227 or 228;

(B) a regional tollway authority under Chapter 366;

(C) a regional mobility authority under Chapter 370; or

(D) a county under Chapter 284.

(b) A toll project becomes a part of the state highway system and the commission shall maintain the project without tolls when the costs of acquisition and construction of the project have been paid and:

(1) all of the bonds and interest on the bonds that are payable from or secured by revenues of the project have been paid; or

(2) a sufficient amount for the payment of all bonds and interest on the bonds to maturity has been set aside in a trust fund held for the benefit of the bondholders.

SECTION 7. The following provisions of the Transportation Code are repealed:

(1) Section 228.006;

(2) Section 228.109(d);

(3) Section 284.008(c) and (d); and

(4) Section 366.175.

SECTION 8. 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, 2007.