82R9199 JTS-F
  By: Shapiro, Harris, Nelson S.B. No. 1144
  relating to comprehensive development agreements.
         SECTION 1.  Subchapter E, Chapter 223, Transportation Code,
  is amended by adding Section 223.2011 to read as follows:
  Sections 223.201(f) and (i), the department may enter into a
  comprehensive development agreement relating to managed lane
  improvements to Interstate Highway 35E between Interstate Highway
  635 and United States Highway 380.
         (b)  This section expires August 31, 2013.
         SECTION 2.  Section 371.101, Transportation Code, is amended
  to read as follows:
  (a)  A comprehensive development agreement must contain a provision
  authorizing the toll project entity to purchase, under terms agreed
  to by the parties:
               (1)  the interest of a private participant in the toll
  project that is the subject of the agreement; and
               (2)  related property, including any interest in a
  highway or other facility designed, developed, financed,
  constructed, operated, or maintained under the agreement.
         (b)  The provision must include a schedule stating a specific
  price for the purchase of the toll project at certain intervals from
  the date the project opens, not less than one year and not to exceed
  five years, over the term of the agreement.
         (c)  The provision must authorize the toll project entity to
  purchase the private entity's interest at a stated interval in an
  amount not to exceed the lesser of:
               (1)  the price stated for that interval; or
               (2)  the greater of:
                     (A)  the then fair market value of the private
  entity's interest; or
                     (B)  an amount equal to the amount of outstanding
  debt at that time, as specified in the comprehensive development
         (d)  A toll project entity may not, under any circumstance,
  purchase the private entity's interest for an amount higher than
  the stated interval amount.
         (e)  A contract to purchase the private entity's interest at
  the then fair market value as described by Subsection (c)(2)(A)
  must contain a provision, mutually agreed on by the toll project
  entity and the private participant, detailing the calculation used
  to determine that value.
         (f)  The toll project entity shall request a proposed
  termination-by-purchase schedule in each request for detailed
  proposals and shall consider and score each schedule in each
  evaluation of proposals.
         (g)  A private entity shall, not later than 12 months before
  the date that a new price interval takes effect, notify the toll
  project entity of the beginning of the price interval. The toll
  project entity must notify the private entity as to whether it will
  exercise the option to purchase under this section not later than
  six months after the date it receives notice under this subsection.
         (h)  A toll project entity must notify the private entity of
  the toll project entity's intention to purchase the private
  entity's interest under this section not less than six months
  before the date of the purchase  [A toll project entity having
  rulemaking authority by rule and a toll project entity without
  rulemaking authority by official action shall develop a formula for  
  making termination payments to terminate a comprehensive
  development agreement under which a private participant receives
  the right to operate and collect revenue from a toll project.   A
  formula must calculate an estimated amount of loss to the private
  participant as a result of the termination for convenience.
         [(b)     The formula shall be based on investments,
  expenditures, and the internal rate of return on equity under the
  agreed base case financial model as projected over the original
  term of the agreement, plus an agreed percentage markup on that
         [(c)     A formula under Subsection (b) may not include any
  estimate of future revenue from the project, if not included in an
  agreed base case financial model under Subsection (b).  
  Compensation to the private participant upon termination for
  convenience may not exceed the amount determined using the formula
  under Subsection (b)].
         SECTION 3.  Sections 371.103(b) and (c), Transportation
  Code, are amended to read as follows:
         (b)  Except as provided by Subsection (c), a comprehensive
  development agreement may contain a provision authorizing the toll
  project entity to compensate the private participant in the
  agreement for the loss of toll revenues attributable to the
  construction by the entity of a limited access highway project
  located within an area that extends up to four miles from either
  side of the centerline of the project developed under the
  agreement, less the private participant's decreased operating and
  maintenance costs attributable to the highway project, if any. A
  provision under this subsection may be effective only for a period
  of 30 years or less from the effective date of the agreement.
         (c)  A comprehensive development agreement may not require
  the toll project entity to provide compensation for the
  construction of:
               (1)  a highway project contained in the state
  transportation plan or a transportation plan of a metropolitan
  planning organization in effect on the effective date of the
               (2)  work on or improvements to a highway project
  necessary for improved safety, or for maintenance or operational
               (3)  a high occupancy vehicle exclusive lane addition
  or other work on any highway project that is required by an
  environmental regulatory agency; [or]
               (4)  a transportation project that provides a mode of
  transportation that is not included in the project that is the
  subject of the comprehensive development agreement; or
               (5)  a highway designated an interstate highway.
         SECTION 4.  Sections 371.101 and 371.103, Transportation
  Code, as amended by this Act, apply only to a comprehensive
  development agreement entered into on or after the effective date
  of this Act.  A comprehensive development agreement entered into
  before the effective date of this Act is governed by the law in
  effect on the date the agreement was entered into, and the former
  law is continued in effect for that purpose.
         SECTION 5.  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, 2011.