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A BILL TO BE ENTITLED
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AN ACT
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relating to contract provisions in comprehensive development |
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agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 371, Transportation Code, |
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as added by Chapter 264 (S.B. 792), Acts of the 80th Legislature, |
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Regular Session, 2007, is amended by adding Section 371.105 to read |
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as follows: |
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Sec. 371.105. PROHIBITION AGAINST CONCESSION PAYMENTS; |
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REVENUE SHARING. (a) In this section, "concession payment" means |
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an up-front payment made by a private participant in return for |
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which the private participant is granted a right to operate and |
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receive revenue from a toll project. |
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(b) A toll project entity is prohibited from accepting a |
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concession payment as part of a comprehensive development |
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agreement. |
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(c) A toll project entity may enter into a revenue sharing |
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agreement with a private participant as part of a comprehensive |
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development agreement. |
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SECTION 2. Section 371.151(a), Transportation Code, as |
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added by Chapter 264 (S.B. 792), Acts of the 80th Legislature, |
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Regular Session, 2007, is amended to read as follows: |
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(a) Before a toll project entity enters into a contract for |
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the construction of a toll project, the entity shall publish in the |
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manner provided by Section 371.152 information regarding: |
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(1) project financing, including: |
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(A) the total amount of debt that has been and |
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will be assumed to acquire, design, construct, operate, and |
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maintain the toll project; |
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(B) a description of how the debt will be repaid, |
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including a projected timeline for repaying the debt; and |
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(C) the projected amount of interest that will be |
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paid on the debt; |
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(2) whether the toll project will continue to be |
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tolled after the debt has been repaid; |
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(3) a description of the method that will be used to |
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set toll rates; |
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(4) a description of any terms in the contract |
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relating to competing facilities, including any penalties |
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associated with the construction of a competing facility; |
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(5) a description of any terms in the contract |
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relating to a termination for convenience provision, including any |
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information regarding how the value of the project will be |
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calculated for the purposes of making termination payments; |
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(6) the initial toll rates, the methodology for |
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increasing toll rates, and the projected toll rates at the end of |
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the term of the contract; and |
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(7) the terms of any revenue sharing agreement [the
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projected total amount of concession payments]. |
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SECTION 3. (a) The changes in law made by Section 371.151, |
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Transportation Code, as amended by this Act, and Section 371.105, |
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Transportation Code, as added by this Act, apply only to a |
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comprehensive development agreement entered into on or after the |
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effective date of this Act. |
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(b) A comprehensive development agreement entered into |
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before the effective date of this Act is governed by the law in |
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effect on the day the agreement was finalized, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |