By: Carona S.B. No. 1929

A BILL TO BE ENTITLED

AN ACT

relating to the construction, acquisition, financing, maintenance, management, operation, ownership, and control of transportation facilities and the progress, improvement, policing, and safety of transportation in the state; modifying existing taxes.

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

SECTION 1. Section 91.004(a), Transportation Code, is amended to read as follows:

(a) The department may:

(1) plan and make policies for the location, construction, maintenance, and operation of [a] rail facilities [facility] or systems [system] in this state;

(2) acquire, finance, construct, reconstruct, relocate, maintain, and subject to Section 91.005, operate publicly or privately owned [a] passenger or freight rail facilities [facility], individually or as one or more systems;

(3) for the purpose of acquiring or financing a rail facility or system, accept a grant or loan from a:

(A) department or agency of the United States;

(B) department, agency, or political subdivision of this state; or

(C) public or private person;

(4) contract with a public or private person to finance, construct, maintain, or operate a rail facility under this chapter; or

(5) perform any act necessary to the full exercise of the department's powers under this chapter.

SECTION 2. Section 201.204, Transportation Code, is amended to read as follows:

Sec. 201.204. SUNSET PROVISION. The Texas Department of Transportation is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished September 2 [1], 2009.

SECTION 3. Subchapter H, Chapter 201, Transportation Code, is amended by adding Section 201.619 to read as follows:

Sec. 201.619. COOPERATIVE PLANNING WITH COUNTIES. (a) The department and a county jointly may enter into an agreement that identifies future transportation corridors within the county in accordance with this subsection. Such a corridor must be derived from existing transportation plans adopted by the department or commission, the county, or a metropolitan planning organization.

(b) Notwithstanding any other law, if all or part of a subdivision for which a plat is required is located in any county within a future transportation corridor identified in an agreement under this section:

(1) the commissioners court of the county in which the land is located:

(A) shall refuse to approve the plat for recordation unless the plat states that the subdivision is located within the future transportation corridor; and

(B) may refuse to approve the plat for recordation if an environmental review of a transportation project in the future transportation corridor has begun.

SECTION 4. Sections 203.092(a-1), (a-2), and (a-3), Transportation Code, are amended to read as follows:

(a-1) Notwithstanding Subsection (a), the department and the utility shall share equally the cost of the relocation of a utility facility that is made before September 1, 2013 [2007], and required by the improvement of a nontolled highway to add one or more tolled lanes. This subsection expires September 1, 2013 [2007].

(a-2) Notwithstanding Subsection (a), the department and the utility shall share equally the cost of the relocation of a utility facility that is made before September 1, 2013 [2007], and required by [for] the improvement of a nontolled highway that has been converted to a turnpike project or toll project. This subsection expires September 1, 2013 [2007].

(a-3) Notwithstanding Subsection (a), the department and the utility shall share equally the cost of the relocation of a utility facility that is made before September 1, 2013 [2007], and required by [for] the construction on a new location of a turnpike project or toll project or the expansion of such a turnpike project or toll project. This subsection expires September 1, 2013 [2007].

SECTION 5. Subchapter A, Transportation Code, is amended by adding Section 222.0011 to read as follows:

Sec. 222.0011. RESTRICTIONS ON USE OF STATE HIGHWAY FUND. Notwithstanding any other provision of law, money in the state highway fund may not be transferred to or appropriated for use by:

(1) the Department of Public Safety;

(2) the Health And Human Services Commission or any other health and human services agency or entity; or

(3) the Texas Workforce Commission.

SECTION 6. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.004 to read as follows:

Sec. 222.004. ISSUANCE OF GENERAL OBLIGATION BONDS FOR HIGHWAY IMPROVEMENT PROJECTS. (a) The commission may issue general obligation bonds to fund state highway improvement projects.

(b) The aggregate principal amount of the bonds that are issued may not exceed $5 billion.

(c) The proceeds of bonds issued under this section may not be used for any purpose other than the payment of any costs related to the bonds and the purposes for which revenues are dedicated under Section 7-a, Article VIII, Texas Constitution.

(d) The commission may enter into credit agreements, as defined by Chapter 1371, Government Code, relating to the bonds authorized by this section. The agreements may be secured by and payable from the same sources as the bonds.

(e) All laws affecting the issuance of bonds and other public securities by governmental entities, including Chapters 1201, 1202, 1204, 1207, 1231, and 1371, Government Code, apply to the issuing of bonds and the entering into of credit agreements under this section.

(f) The proceeds of bonds issued under this section may be used to:

(1) finance other funds relating to the bonds, including debt service reserve and contingency; and

(2) pay the cost or expense of the issuance of the bonds.

(g) Bonds issued under this section may be sold in such manner and subject to such terms and provisions as set forth in the order authorizing their issuance, and such bonds must mature not later than 30 years after their dates of issuance, subject to any refundings or renewals.

(h) The comptroller shall pay the principal of the bonds as they mature and the interest as it becomes payable, and shall pay any cost related to the bonds that become due, including payments under credit agreements.

SECTION 7. Section 223.201(f), Transportation Code, is amended to read as follows:

(f) The authority to enter into comprehensive development agreements provided by this section expires on August 30 [31], 2011.

SECTION 8. Section 223.205(a), Transportation Code, is amended to read as follows:

(a) Notwithstanding Section 223.006 and the requirements of Subchapter B, Chapter 2253, Government Code, the department shall require a private entity entering into a comprehensive development agreement under this subchapter to provide a performance bond and a payment bond or [an] alternative forms [form] of security, or a combination of bonds and alternative forms of security, in an amount, as determined by the department, that is sufficient to:

(1) ensure the proper performance of the agreement; and

(2) protect:

(A) the department; and

(B) payment bond beneficiaries who have a direct contractual relationship with the private entity or a subcontractor of the private entity to supply labor or material.

SECTION 9. Subchapter E, Chapter 223, Transportation Code, is amended by adding Section 223.210 to read as follows:

Sec. 223.210. NOTIFICATION OF TERMINATION FOR CONVENIENCE. If the department decides to purchase an interest of a private participant in a comprehensive development agreement and related property before the termination date of the agreement, the department shall notify the governor, lieutenant governor, and speaker of the house of representatives not later than the 120th day preceding the date of the proposed purchase.

SECTION 10. Section 224.1541(b), Transportation Code, is amended to read as follows:

(b) The commission may designate a lane as an exclusive lane under Subsection (a) only if the commission determines that the use or operation of the exclusive lane is likely to enhance safety, mobility, or air quality and:

(1) [there:]

[(A)are] two or more lanes adjacent to the proposed exclusive lane are available for the use of vehicles other than vehicles for which the lane is restricted; [or]

(2) [(B) is] a multilane facility adjacent to the proposed exclusive lane is available for the use of vehicles other than vehicles for which the lane is restricted; or

(3) the proposed exclusive lane is to be used only by commercial motor vehicles, as defined by commission order [and]

[(2) the use or operation of the exclusive lane is likely to enhance safety, mobility, or air quality].

SECTION 11. Subchapter A, Chapter 228, Transportation Code, is amended by adding Sections 228.0091, 228.011, 228.012, and 228.013 to read as follows:

Sec. 228.0091. AUDIT BY STATE AUDITOR. The state auditor shall perform an audit of each annual financial statement for a toll road segment or combination of segments.

Sec. 228.011. REVIEW AND APPROVAL BY ATTORNEY GENERAL OF CERTAIN AGREEMENTS. The department may not enter into a comprehensive development agreement until the agreement is reviewed for legal sufficiency by the attorney general.

Sec. 228.012. TOLL REVENUE PROJECTIONS. (a) The department may not enter into an agreement with a developer to operate, lease, or finance a segment of a toll road until the comptroller has projected the toll revenue for each geographic region of the toll road segment.

Sec. 228.013. ACQUISITION OF TOLL PROJECTS. (a) The commission may authorize the department to enter into an agreement with a governmental entity to acquire a toll project or system from that entity if the governing body of the entity approves the acquisition, and to issue bonds to acquire such toll project or system as provided in Subsection (b), assume any debts, obligations, and liabilities of the entity relating to the toll project or system transferred to the department, or carry out any combination of the issuance of bonds or assumption of debts, obligations, and liabilities. Such agreements may include any terms the department determines to be in the best interest of the state.

(b) The commission may issue toll revenue bonds under Subchapter C or use any other legally available funds for the purpose of acquiring a toll project or system.

SECTION 12. Subchapter A, Chapter 284, Transportation Code, is amended by adding Section 284.0021 to read as follows:

Sec. 284.0021. JOINT USE OF POWERS. Two or more counties jointly may exercise the powers granted under this chapter.

SECTION 13. Subchapter A, Chapter 284, Transportation Code, is amended by adding Section 284.0031 to read as follows:

Sec. 284.0031. ADDITIONAL POWERS. A county, acting through the commissioners court of the county, or a local government corporation, may exercise any power granted to a regional mobility authority under Chapter 370 to the extent that such a power does not conflict with the powers or duties provided under this chapter. In the exercise of a power granted under Chapter 370, a county is subject to regulation by the commission as if it were a regional mobility authority. The exercise of a power under Chapter 370 does not subject a county to involuntary dissolution under Section 370.332.

SECTION 14. Section 284.011(a), Transportation Code, as added by Chapter 281, Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

(a) A county may transfer to the department a project under this chapter [that has outstanding bonded indebtedness] if the commission:

(1) agrees to the transfer; and

(2) agrees to assume any [the] outstanding bonded indebtedness.

SECTION 15. Subchapter C, Chapter 284, Transportation Code, is amended by adding Section 284.075 to read as follows:

Sec. 284.075. TRANSACTION PROCESSING. A county may enter into an agreement with a bank or other financial institution, as defined by Section 31.002, Finance Code, or a clearinghouse providing services to a bank or other financial institution, to provide, on terms and conditions approved by the county, toll transaction processing and other related services.

SECTION 16. Subchapter B, Chapter 366, Transportation Code, is amended by adding Section 366.037 to read as follows:

Sec. 366.037. ADDITIONAL POWERS. An authority may exercise any power granted to a regional mobility authority under Chapter 370 to the extent that such a power does not conflict with the powers or duties of an authority provided under this chapter. In the exercise of a power granted under Chapter 370, an authority is subject to regulation by the commission as if it were a regional mobility authority. The exercise of a power under Chapter 370 does not subject an authority to involuntary dissolution under Section 370.332.

SECTION 17. Section 366.172, Transportation Code, is amended to read as follows:

Sec. 366.172. LEASE, SALE, OR CONVEYANCE OF TURNPIKE PROJECT. (a) An authority may lease, sell, or convey in another manner a turnpike project or system to the department, a county, or a local government corporation created under Chapter 431 only with the approval of the governing body of the entity to which the project is transferred.

(b) An agreement to lease, sell, or convey a turnpike project or system under this section must provide for the discharge and final payment or redemption of the authority's outstanding bonded indebtedness for the turnpike project and must not be prohibited under the bond proceedings applicable to the system, if any, of which the turnpike project is a part.

SECTION 18. Subchapter E, Chapter 366, Transportation Code, is amended by adding Section 366.186 to read as follows:

Sec. 366.186. TRANSACTION PROCESSING. An authority may enter into an agreement with a bank or other financial institution, as defined by Section 31.002, Finance Code, or a clearinghouse providing services to a bank or other financial institution, to provide, on terms and conditions approved by the authority, toll transaction processing and other related services.

SECTION 19. Sections 366.251(b), (c), (d) and (e), Transportation Code, are amended to read as follows:

(b) The commissioners court of each county of the authority shall appoint [one director] to [serve on] the board a number of directors determined by the ratio of the population of the county to the total population of the area covered by the authority. The governor shall appoint one director to serve on the board and shall appoint an additional director if necessary to maintain an odd number of directors on the board, but no more than two appointees of the governor may serve at any time.

(c) [In addition to directors appointed by a commissioners court under Subsection (b), the commissioners courts of those counties of the authority in which all or part of a turnpike project is located and open for use by the traveling public shall appoint two additional directors as follows:

[(1) if the open turnpike project is located entirely in one county, the commissioners court of that county shall appoint the two additional directors;

[(2) if the open turnpike project is located in two counties of the authority, the commissioners court of each county shall appoint one of the additional directors; or

[(3) if the open turnpike project is located in more than two counties, the commissioners court of each county in which the project is located shall appoint one additional director on a rotating basis and in accordance with a schedule agreed to and approved by concurrent resolutions adopted by the commissioners courts of at least three-fourths of the counties of the authority.

[(d)] Directors shall be divided into two groups. To the greatest degree possible, each group shall contain an equal number of directors. Directors shall serve terms of two years, except that one group of directors of the initial board of an authority shall serve for a term of one year.

(d) [(e)] The director appointed by the governor must have resided in a county outside the authority that is adjacent to a county of the authority for at least one year before the person's appointment. Each director appointed by a commissioners court [under Subsection (b)] must have resided in that county for at least one year before the person's appointment. [Each director appointed by a commissioners court under Subsection (c) must have resided in a county of the authority for at least one year before the person's appointment.]

SECTION 20. Subchapter E, Chapter 370, Transportation Code, is amended by adding Section 370.194 to read as follows:

Sec. 370.194. TRANSACTION PROCESSING. An authority may enter into an agreement with a bank or other financial institution, as defined by Section 31.002, Finance Code, or a clearinghouse providing services to a bank or other financial institution, to provide, on terms and conditions approved by the authority, toll transaction processing and other related services.

SECTION 21. Section 370.251(c), Transportation Code, is amended to read as follows:

(c) Directors [If permitted under the constitution of this state, directors serve staggered six-year terms, with the terms of no more than one-third of the directors expiring on February 1 of each odd-numbered year. If six-year terms are not permitted under the constitution, directors] serve two-year terms, with as near as possible to [the terms of not more than] one-half of the directors' terms [directors] expiring on February 1 of each year.

SECTION 22. Title 6, Subtitle I, Transportation Code, is amended by adding a new Chapter 432 to read as follows: CHAPTER 432. TEXAS TRANSPORTATION COMPANY ACT

Sec. 432.001. ORGANIZATION OF THE TEXAS TRANSPORTATION COMPANY. The commission may form the Texas Transportation Company as a for profit corporation, a limited liability company, or a limited partnership.

Sec. 432.002. PURPOSE OF THE COMPANY. The purpose of the company is for the acquisition, development, and operation of existing and new toll projects and the conduct of all activities ancillary thereto. The company may conduct any lawful activity that is consistent with its purpose and not prohibited by the Business Organizations Code or this chapter.

Sec. 432.003. GENERAL POWERS. (a) The company shall have all of the powers and privileges accorded to it under the law governing its formation.

(b) The company may enter into any contract, expend any funds, incur any indebtedness and procure goods and services necessary or convenient to develop any toll project on such terms as the governing body deems appropriate.

(c) The company shall, subject to the approval of the commission, have any other powers that are reasonably necessary to develop a toll project.

Sec. 432.004. ISSUANCE OF SECURITIES. (a) The company may issue securities and encumber its assets to the same extent and in the same manner as any similar business entity organized under the Business Organizations Code would be empowered to do.

(b) To the maximum extent permitted by applicable law and to the extent consistent with conventional industry practices regarding the distribution of securities, securities of the company offered to investors shall be offered in a manner that optimizes valuation and securities liquidity while giving a preference to pension, retirement and investment funds and other investors headquartered in this state.

Sec. 432.005. LIABILITIES OF THE STATE. Neither the state nor a toll authority shall be liable for the debts, breaches of duty, or other liabilities or obligations of the company.

Sec. 432.006. PRIVATE ENTITY. The company is a private, non-governmental entity.

SECTION 23. Section 501.138(c), Transportation Code, is amended to read as follows:

(c) Of the amount received under Subsection (b) (2), the department shall deposit:

(1) $5 in the Texas mobility fund [general revenue fund]; and

(2) $3 to the credit of the state highway fund to recover the expenses necessary to administer this chapter.

SECTION 24. Section 504.101(e), Transportation Code, is amended to read as follows:

(e) Of each fee collected by the department under this section:

(1) $1.25 shall be used to defray the cost of administering this section; and

(2) the remainder shall be deposited to the credit of the Texas mobility fund [general revenue fund].

SECTION 25. Section 542.402, Transportation Code, is amended by adding Subsection (f) to read as follows:

(f) The comptroller shall deposit money received under Subsection (b) to the credit of the Texas mobility fund.

SECTION 26. Section 162.102, Tax Code, is amended to read as follows:

Sec. 162.102. TAX RATE. Except as provided by Section 162.1025, the [The] gasoline tax rate is 20 cents for each net gallon or fractional part on which the tax is imposed under Section 162.101.

SECTION 27. Subchapter B, Chapter 162, Tax Code, is amended by adding Section 162.1025 to read as follows:

Sec. 162.1025. ANNUAL RATE CHANGE ACCORDING TO CONSUMER PRICE INDEX. On October 1 of each year, the rate of the gasoline tax imposed under this subchapter is increased or decreased by a percentage that is equal to the consumer price index percentage change for the preceding fiscal year.

SECTION 28. Section 162.202, Tax Code, is amended to read as follows:

Sec. 162.202. TAX RATE. Except as provided by Section 162.2025, the [The] diesel fuel tax rate is 20 cents for each net gallon or fractional part on which the tax is imposed under Section 162.201.

SECTION 29. Subchapter C, Chapter 162, Tax Code, is amended by adding Section 162.2025 to read as follows:

Sec. 162.2025. ANNUAL RATE CHANGE ACCORDING TO CONSUMER PRICE INDEX. On October 1 of each year, the rate of the diesel fuel tax imposed under this subchapter is increased or decreased by a percentage that is equal to the consumer price index percentage change for the preceding fiscal year.

SECTION 30. Subtitle C, Title 3, Tax Code, is amended by adding Chapter 329 to read as follows: CHAPTER 329. SALES AND USE TAXES BY CERTAIN MUNICIPALITIES

Sec. 329.001. DEFINITION. In this chapter, "transit sales and use tax" means a sales and use tax imposed for the support of transportation services authorized under the Transportation Code.

Sec. 329.002. TRANSIT SALES AND USE TAX NOT COUNTED IN COMBINED LOCAL TAX RATE. Notwithstanding any other law, the rate of a transit sales and use tax imposed within the territory of a municipality may not be considered in determining the combined or overlapping rate of local sales and use taxes in the municipality.

SECTION 31. The following provisions of the Transportation Code are repealed:

(1) Section 223.203(m).

SECTION 32. (a) Except as provided by Subsection (b), this Act takes effect September 1, 2007.

(b) Section 222.004, Transportation Code, as added by this Act, takes effect on the date on which the constitutional amendment proposed by _.J.R. No. __, 80th Legislature, Regular Session, 2007, takes effect. If that amendment is not approved by the voters, that section does not take effect.