By: Carona S.B. No. 1383

A BILL TO BE ENTITLED

AN ACT

relating to the creation and administration of the Texas Local Participation Transportation Program.

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

SECTION 1. Chapter 403, Government Code, is amended by adding Subchapter O to read as follows:

SUBCHAPTER O. TEXAS LOCAL PARTICIPATION TRANSPORTATION PROGRAM

Sec. 403.351. DEFINITIONS. In this subchapter:

(1) "Commission" means the Texas Transportation Commission.

(2) "Department" means the Texas Department of Transportation.

(3) "Fund" means the Texas local participation transportation fund.

(4) "Local project sponsor" means:

(A) a municipality;

(B) a county, including a county acting under Chapter 284, Transportation Code;

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

(D) a regional tollway authority under Chapter 366, Transportation Code.

(5) "Program" means the Texas Local Participation Transportation Program created under this subchapter.

(6) "Project" means a tolled or non-tolled facility:

(A) authorized under Section 222.104, Transportation Code; and

(B) sponsored by a local project sponsor.

(7) "Total project cost" in connection with a project means the estimated costs of:

(A) planning, environmental assessment, regulatory permitting and compliance, design, construction, construction oversight and inspection, right-of-way acquisition, utility relocation, program management, legal services, and financial advisory services; and

(B) financing, but only to the extent financing costs relate to the securitization of amounts received from the fund.

Sec. 403.352. TEXAS LOCAL PARTICIPATION TRANSPORTATION FUND. (a) The Texas local participation transportation fund is a dedicated account in the general revenue fund.

(b) The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund;

(3) interest and earnings received from investments of money in the fund; and

(4) money repaid by a local project sponsor under a loan made under this subchapter.

(c) Money from the state highway fund may not be transferred to the fund.

(d) Money in the fund may be used only for the administration of the program and may not be appropriated for any other purpose.

(e) Sections 403.095 and 404.071 do not apply to the fund.

Sec. 403.353. GIFTS AND GRANTS. The comptroller may solicit and accept gifts and grants to the fund. A gift or grant to the fund may be used in the same manner as other money in the fund, subject to any limitation or requirement placed on the gift or grant by the donor or granting entity.

Sec. 403.354. RULEMAKING AUTHORITY. The comptroller may adopt rules and guidelines relating to the comptroller's responsibilities under this subchapter.

Sec. 403.355. TEXAS LOCAL PARTICIPATION TRANSPORTATION PROGRAM. (a) The comptroller shall administer a program to encourage local project sponsors to participate in the delivery of eligible projects by providing the sponsors financial assistance from the fund.

(b) In administering the program, the comptroller shall develop a process for certifying the eligibility of projects nominated by local project sponsors for financial assistance from the fund and for certifying that a project promotes economic development and diversification in the area in which the project is located. The process must require a local project sponsor to submit a request for certification that includes:

(1) a description of the anticipated impact of the project on local economic development and diversification;

(2) a proposed schedule for the development and completion of the project, including an estimate of the date on which the project will be open to traffic;

(3) sufficient information to determine that the applicant is a local project sponsor eligible to receive funding under this subchapter;

(4) a specific description of the project, including project limits and connections with other transportation facilities;

(5) identification of the scope of work to be completed and a detailed estimate of total project costs, developed after coordination with the department concerning the scope and design criteria for the project;

(6) documentation demonstrating that the project is included in the unified transportation program approved by the commission and any applicable transportation plan for the area in which the project is located;

(7) evidence that a copy of the request for certification submitted to the comptroller was also submitted to the department; and

(8) a proposed plan for funding the project that:

(A) is in compliance with Subsection (c); and

(B) specifically identifies the contribution of local sources to the total project cost.

(c) An eligible project may not receive more than 50 percent of the total project cost from the fund.

Sec. 403.356. DETERMINATION OF CONTRIBUTION. For purposes of determining the amount contributed by local sources to the total project cost under Section 403.355, a local project sponsor may include, as applicable, funds on hand, ad valorem taxes, local option taxes or fees dedicated to the project, economic development grants, other project-specific gifts and grants, and, if the project is planned as a toll facility, toll revenues.

Sec. 403.357. ADMINISTRATION OF PROGRAM. In administering the program the comptroller shall:

(1) prepare an annual report projecting the amount of funding available based on estimates of future deposits to the fund and of money to be repaid to the fund by local project sponsors under loans made under this subchapter; and

(2) establish guidelines for disbursements from the fund that link disbursements with proposed project development and completion schedules submitted under Section 403.355(b)(2).

Sec. 403.358. PROJECT CERTIFICATION. If the comptroller finds that a project for which a request for certification is submitted is eligible for financial assistance from the fund and that the project promotes economic development and diversification in the area in which the project is located, the comptroller shall issue a certification to the local project sponsor to begin negotiations with the department under Section 222.104, Transportation Code. The certification must identify the maximum total funds available for the project in consideration of the total project costs and the money available in the fund.

Sec. 403.359. FUND DISBURSEMENTS. (a) The disbursement of funds by the comptroller is subject to the department's certification that the project is consistent with the unified transportation program and any applicable transportation plan for the area in which the project is located, and that the project may be effectively integrated with the state highway system.

(b) After a project is certified under Section 403.358 and Subsection (a), the comptroller may make disbursements from the fund to a local project sponsor in the form of a grant or loan in accordance with guidelines established under Section 403.357(2).

(c) The comptroller may not make a disbursement from the fund for a project until there is a signed agreement under Section 222.104, Transportation Code. The department may not be required under the signed agreement to contribute any funding toward the cost of the project.

(d) The comptroller may make disbursements from the fund to reimburse the portion of total project costs composed of funds contributed from local sources. The payment shall be made in the same manner as a pass-through toll payment made under Section 222.104, Transportation Code.

Sec. 403.360. PROJECT DEVELOPMENT. An agreement negotiated under Section 222.104, Transportation Code, for a project that receives funding under this subchapter must:

(1) prescribe the roles and responsibilities of the parties for all significant work to be performed; and

(2) provide that a local project sponsor is required to meet state design criteria, construction specifications, and contract administration procedures unless the department grants an exception.

Sec. 403.361. FEES. In connection with each application for certification of a project under this subchapter, the comptroller shall impose and collect from the local project sponsor an application fee in an amount sufficient to cover the costs incurred by the comptroller in administering this subchapter.

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, 2009.