83R712 TRH-D
 
  By: Carona S.B. No. 1018
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the agreements, costs, revenues, and finances of
  regional tollway authorities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 222.108(d), Transportation Code, is
  amended to read as follows:
         (d)  In this section, "transportation project" includes:
               (1)  a transportation project under [has the meaning
  assigned by] Section 370.003; and
               (2)  a turnpike project and a system under Section
  366.003.
         SECTION 2.  Section 222.110(e), Transportation Code, is
  amended to read as follows:
         (e)  The sales and use taxes to be deposited into the tax
  increment account under this section may be disbursed from the
  account only to:
               (1)  pay for the transportation project for which the
  transportation reinvestment zone was designated, and for aesthetic
  improvements within the zone [projects authorized under Section
  222.104], including the repayment of amounts owed under a contract
  [an agreement] entered into under Section 222.106 or 222.107, as
  applicable [that section]; and
               (2)  notwithstanding Sections 321.506 and 323.505, Tax
  Code, satisfy claims of holders of tax increment bonds, notes, or
  other obligations issued or incurred for a transportation project
  for which the zone was designated [projects authorized under
  Section 222.104].
         SECTION 3.  Sections 366.003(8), (9), and (11),
  Transportation Code, are amended to read as follows:
               (8)  "Governmental [Local governmental] entity" means
  a political subdivision of the state, including a municipality or a
  county, a political subdivision of a county, a group of adjoining
  counties, a district organized or operating under Section 52,
  Article III, or Section 59, Article XVI, Texas Constitution, the
  department, another state agency, [or] a nonprofit corporation,
  including a transportation corporation created under Chapter 431,
  or any other public entity or instrumentality.
               (9)  "Revenue" means the tolls, rents, and other money
  received by an authority:
                     (A)  from the ownership or operation of a turnpike
  project; or
                     (B)  under an agreement under Section 366.302 or
  366.303.
               (11)  "Turnpike project" means a highway of any number
  of lanes, with or without grade separations, owned or operated by an
  authority under this chapter and any improvement, extension, or
  expansion to that highway, including:
                     (A)  an improvement to relieve traffic congestion
  and promote safety;
                     (B)  a bridge, tunnel, overpass, underpass,
  interchange, service road, ramp, entrance plaza, approach, or
  tollhouse;
                     (C)  an administration, storage, or other
  building the authority considers necessary to operate the turnpike
  project;
                     (D)  a parking area or structure, rest stop, park,
  and other improvement or amenity the authority considers necessary,
  useful, or beneficial for the operation of a turnpike project;
  [and]
                     (E)  property rights, easements, and interests
  the authority acquires to construct or operate the turnpike
  project; and
                     (F)  improvements in a transportation
  reinvestment zone designated under Subchapter E, Chapter 222.
         SECTION 4.  Section 366.004(a), Transportation Code, is
  amended to read as follows:
         (a)  The cost of acquisition, construction, improvement,
  extension, or expansion of a turnpike project or system under this
  chapter includes the cost of:
               (1)  the actual acquisition, construction,
  improvement, extension, or expansion of the turnpike project or
  system;
               (2)  the acquisition of real property, rights-of-way,
  property rights, easements, and other interests in real property;
               (3)  machinery and equipment;
               (4)  interest payable before, during, and after
  acquisition, construction, improvement, extension, or expansion as
  provided in the bond proceedings;
               (5)  traffic estimates, revenue estimates, engineering
  and legal services, plans, specifications, surveys, appraisals,
  construction cost estimates, and other expenses necessary or
  incidental to determining the feasibility of the construction,
  improvement, extension, or expansion;
               (6)  necessary or incidental administrative, legal,
  and other expenses;
               (7)  compliance with laws, regulations, and
  administrative rulings, including any costs associated with
  necessary environmental mitigation measures;
               (8)  financing;
               (9)  the assumption of debts, obligations, and
  liabilities of an entity relating to a turnpike project or system
  transferred to an authority by that entity; [and]
               (10)  expenses related to the initial operation of the
  turnpike project or system; and
               (11)  payment obligations of an authority under a
  contract or agreement authorized by this chapter in connection with
  the acquisition, construction, improvement, extension, expansion,
  or financing of the turnpike project or system.
         SECTION 5.  Sections 366.033(a), (g), and (k),
  Transportation Code, are amended to read as follows:
         (a)  An authority, acting through its board, without state
  approval, supervision, or regulation, may:
               (1)  adopt rules for the regulation of its affairs and
  the conduct of its business;
               (2)  adopt an official seal;
               (3)  study, evaluate, design, finance, acquire,
  construct, maintain, repair, and operate turnpike projects,
  individually or as one or more systems;
               (4)  acquire, hold, and dispose of property in the
  exercise of its powers and the performance of its duties under this
  chapter;
               (5)  enter into contracts or operating agreements with
  similar authorities, other governmental entities, or agencies of
  the United States, a state of the United States, the United Mexican
  States, or a state of the United Mexican States;
               (6)  enter into contracts or agreements necessary or
  incidental to its duties and powers under this chapter;
               (7)  cooperate and work directly with property owners
  and governmental entities [agencies] and officials to support an
  activity required to promote or develop a turnpike project or
  system;
               (8)  employ and set the compensation and benefits of
  administrators, consulting engineers, attorneys, accountants,
  construction and financial experts, superintendents, managers,
  full-time and part-time employees, agents, consultants, and such
  other persons as the authority considers necessary or useful;
               (9)  apply for and directly or indirectly receive and
  spend loans, gifts, grants, and other contributions for the
  construction of a turnpike project or system, and receive and spend
  contributions of money, property, labor, or other things of value
  from any source, including the United States, a state of the United
  States, the United Mexican States, a state of the United Mexican
  States, the commission, the department, any subdivision of the
  state, or any other [local] governmental or private entity, to be
  used for the purposes for which the grants or contributions are
  made, and enter into any agreement necessary for the grants or
  contributions;
               (10)  install, construct, maintain, repair, renew,
  relocate, and remove public utility facilities in, on, along, over,
  or under a turnpike project;
               (11)  organize a corporation under Chapter 431 for the
  promotion and development of turnpike projects and systems;
               (12)  adopt and enforce rules not inconsistent with
  this chapter for the use of any turnpike project or system,
  including:
                     (A)  rules relating to enforcement of tolls,
  fares, or other user fees;
                     (B)  speed and weight limit rules; and
                     (C)  traffic and other public safety rules;
               (13)  enter into leases, operating agreements, service
  agreements, licenses, franchises, and similar agreements with
  public or private parties governing the parties' use of all or any
  portion of a turnpike project and the rights and obligations of the
  authority with respect to a turnpike project; and
               (14)  do all things necessary or appropriate to carry
  out the powers expressly granted by this chapter.
         (g)  An authority and any [local] governmental entity,
  including the department, may enter into a contract under which the
  authority will operate a turnpike project or system on behalf of the
  [local] governmental entity. [An authority may enter into a
  contract with the department under which the authority will operate
  a turnpike project or system on behalf of the department.]
         (k)  If an authority enters into a contract or agreement to
  design, finance, construct, operate, maintain, or perform any other
  function for a turnpike project, system, or improvement authorized
  by law on behalf of a [local] governmental entity, including the
  commission, the department, a regional mobility authority, or any
  other entity, the contract or agreement may provide that the
  authority, in performing the function, is governed by the
  applicable provisions of this chapter and the rules and procedures
  adopted by the authority under this chapter, in lieu of the laws,
  rules, or procedures applicable to the other party for the
  performance of the same function.
         SECTION 6.  Section 366.034, Transportation Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  Notwithstanding Subsection (b), an authority may
  transfer revenue from one or more turnpike projects or systems to a
  general fund of the authority if the transfer does not violate, and
  is not inconsistent with, any bond proceedings governing the use of
  the revenue. An authority may use revenue or other money in a
  general fund for any purpose authorized by this chapter.
         SECTION 7.  Section 366.036, Transportation Code, is amended
  to read as follows:
         Sec. 366.036.  TRANSFER OF TURNPIKE PROJECT OR SYSTEM. (a)
  An authority may transfer any of its turnpike projects or systems to
  one or more [local] governmental entities if:
               (1)  the authority has commitments from the governing
  bodies of the [local] governmental entities to assume jurisdiction
  over the transferred projects or systems;
               (2)  property and contract rights in the transferred
  projects or systems and bonds issued for the projects or systems are
  not affected unfavorably;
               (3)  the transfer is not prohibited under the bond
  proceedings applicable to the transferred projects or systems;
               (4)  adequate provision has been made for the
  assumption of all debts, obligations, and liabilities of the
  authority relating to the transferred projects or systems by the
  [local] governmental entities assuming jurisdiction over the
  transferred projects or systems;
               (5)  the [local] governmental entities are authorized
  to assume jurisdiction over the transferred projects or systems and
  to assume the debts, obligations, and liabilities of the authority
  relating to the transferred projects or systems; and
               (6)  the transfer has been approved by the
  commissioners court of each county that is part of the authority.
         (b)  An authority may transfer to one or more [local]
  governmental entities any traffic estimates, revenue estimates,
  plans, specifications, surveys, appraisals, and other work product
  developed by the authority in determining the feasibility of the
  construction, improvement, extension, or expansion of a turnpike
  project or system, and the authority's rights and obligations under
  any related agreements, if the requirements of Subsections (a)(1)
  and (6) are met.
         (c)  A [local] governmental entity shall, using any lawfully
  available funds, reimburse any expenditures made by an authority
  from its feasibility study fund or otherwise to pay the costs of
  work product transferred to the [local] governmental entity under
  Subsection (b) and any other amounts expended under related
  agreements transferred to the [local] governmental entity.  The
  reimbursement may be made over time, as determined by the [local]
  governmental entity and the authority.
         SECTION 8.  Sections 366.037(a) and (c), Transportation
  Code, are amended to read as follows:
         (a)  In addition to the powers granted under this chapter and
  without supervision or regulation by any state agency or other
  [local] governmental entity, but subject to an agreement entered
  into under Subsection (c), the board of an authority may by
  resolution, and on making the findings set forth in this
  subsection, authorize the use of surplus revenue of a turnpike
  project or system for the study, design, construction, maintenance,
  repair, and operation of a highway or similar facility that is not a
  turnpike project if the highway or similar facility is:
               (1)  situated in a county in which the authority is
  authorized to design, construct, and operate a turnpike project;
               (2)  anticipated to either:
                     (A)  enhance the operation or revenue of an
  existing, or the feasibility of a proposed, turnpike project by
  bringing traffic to that turnpike project or enhancing the flow of
  traffic either on that turnpike project or to or from that turnpike
  project to another facility; or
                     (B)  ameliorate the impact of an existing or
  proposed turnpike project by enhancing the capability of another
  facility to handle traffic traveling, or anticipated to travel, to
  or from that turnpike project; and
               (3)  not anticipated to result in an overall reduction
  of revenue of any turnpike project or system.
         (c)  An authority shall enter into an agreement to implement
  this section with the department, the commission, or another [a
  local] governmental entity[, or another political subdivision]
  that owns a street, road, alley, or highway that is directly
  affected by the authority's turnpike project or related facility.
         SECTION 9.  Section 366.071(a), Transportation Code, is
  amended to read as follows:
         (a)  An authority may pay the expenses of studying the cost
  and feasibility of a turnpike project or system, the expenses of
  designing and engineering a turnpike project or system, and any
  other expenses relating to the preparation and issuance of bonds
  for a proposed turnpike project or system by:
               (1)  using legally available revenue derived from an
  existing turnpike project or system;
               (2)  borrowing money and issuing bonds or entering into
  a loan agreement payable out of legally available revenue
  anticipated to be derived from the operation of an existing
  turnpike project or system; or
               (3)  pledging to the payment of the bonds or loan
  agreements:
                     (A)  legally available revenue anticipated to be
  derived from the operation of an existing turnpike project or
  system;
                     (B)  proceeds from the sale of other bonds; or
                     (C)  revenue legally available to the authority
  from another source.
         SECTION 10.  Section 366.072(c), Transportation Code, is
  amended to read as follows:
         (c)  Money in the feasibility study fund may be used only to
  pay:
               (1)  the expenses of:
                     (A)  studying the cost and feasibility of a
  turnpike project or system; or
                     (B)  designing and engineering a turnpike project
  or system; or
               (2)  [and] any other expenses relating to:
                     (A) [(1)]  the preparation and issuance of bonds
  for, or the financing of:
                           (i)  the acquisition and construction of a
  proposed turnpike project or system; or
                           (ii)  [;
               [(2)  the financing of] the improvement, extension, or
  expansion of an existing turnpike project or system; or [and]
                     (B) [(3)]  private participation, as authorized
  by law, in:
                           (i)  the financing of a proposed turnpike
  project or system;
                           (ii)  [,] the refinancing of an existing
  turnpike project or system;[,] or
                           (iii)  the financing of an improvement,
  extension, or expansion of a turnpike project or system.
         SECTION 11.  The heading to Section 366.073, Transportation
  Code, is amended to read as follows:
         Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,
  OTHER [LOCAL] GOVERNMENTAL ENTITY, OR PRIVATE GROUP.
         SECTION 12.  Section 366.073(a), Transportation Code, is
  amended to read as follows:
         (a)  One or more municipalities, counties, or [local]
  governmental entities, a combination of municipalities, counties,
  and [local] governmental entities, or a private group or
  combination of individuals [in this state] may pay all or part of
  the expenses of studying the cost and feasibility of a turnpike
  project or system and any other expenses relating to:
               (1)  the preparation and issuance of bonds for, or the
  financing of:
                     (A)  the acquisition and construction of a
  proposed turnpike project or system by an authority; or
                     (B) [(2)]  the improvement, extension, or
  expansion of an authority's existing turnpike project or system; or
               (2) [(3)]  the use of private participation under
  applicable law in connection with the acquisition, construction,
  improvement, expansion, extension, maintenance, repair, or
  operation of a turnpike project or system by an authority.
         SECTION 13.  Section 366.111, Transportation Code, is
  amended by amending Subsection (a) and adding Subsection (i) to
  read as follows:
         (a)  An authority, by adoption of a bond resolution, may
  authorize the issuance of bonds to pay all or part of the cost of a
  turnpike project or system, to refund any bonds previously issued
  for the turnpike project or system, or to pay for all or part of the
  cost of a turnpike project or system that is or will become a part of
  another system.
         (i)  Bonds issued under this chapter shall be considered
  authorized investments under Chapter 2256, Government Code, for
  this state, any governmental entity, and any other public entity
  proposing to invest in the bonds.
         SECTION 14.  Sections 366.113(a) and (b), Transportation
  Code, are 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 authorized
  [provided] by this chapter [Subchapter G];
               (3)  revenue [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 under Section 366.175; [and]
               (4)  amounts received under a credit agreement relating
  to the turnpike project or system for which the bonds are issued;
               (5)  revenue or other money in a general fund of an
  authority;
               (6)  proceeds of the sale of other bonds; and
               (7)  money derived from any other source available to
  the authority.
         (b)  Bonds issued under this chapter do not constitute a debt
  of the state, a governmental entity, or any of the counties of an
  authority or a pledge of the faith and credit of the state, a
  governmental entity, or any of the counties. Each bond must contain
  on its face a statement to the effect that the state, the authority,
  [and] the counties of the authority, and any other governmental
  entity are not obligated to pay the bond or the interest on the bond
  from a source other than the amount pledged to pay the bond and the
  interest on the bond, and [neither] the faith and credit and taxing
  power of neither the state, any governmental entity, or the
  counties of the authority are pledged to the payment of the
  principal of or interest on the bond. This subsection does not
  apply to a governmental entity that has issued bonds or entered into
  an agreement under Subchapter G.
         SECTION 15.  Section 366.114(a), Transportation Code, is
  amended to read as follows:
         (a)  A lien on or a pledge of revenue from a turnpike project
  or system under this chapter, a lien on or a pledge of revenue from
  [or on] a reserve, replacement, or other fund established in
  connection with a bond issued under this chapter, or a lien on or a
  pledge of revenue from a contract or agreement entered into under
  this chapter:
               (1)  is enforceable at the time of payment for and
  delivery of the bond or on the effective date of the contract or
  agreement;
               (2)  applies to an item on hand or subsequently
  received;
               (3)  applies without physical delivery of an item or
  other act; and
               (4)  is enforceable against any person having any
  claim, in tort, contract, or other remedy, against the applicable
  authority without regard to whether the person has notice of the
  lien or pledge.
         SECTION 16.  Section 366.118, Transportation Code, is
  amended to read as follows:
         Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS. All
  laws affecting the issuance of bonds by [local] governmental
  entities, including Chapters 1201, 1202, 1204, and 1371, Government
  Code, apply to bonds issued under this chapter. To the extent of a
  conflict between those laws and this chapter, the provisions of
  this chapter prevail.
         SECTION 17.  Section 366.162(a), Transportation Code, is
  amended to read as follows:
         (a)  An authority may construct or improve a turnpike project
  on real property, including a right-of-way acquired by the
  authority or provided to the authority for that purpose by the
  commission, a political subdivision of this state, or any other
  [local] governmental entity.
         SECTION 18.  Subchapter E, Chapter 366, Transportation Code,
  is amended by adding Section 366.1631 to read as follows:
         Sec. 366.1631.  PARTICIPATION PAYMENT FOR REAL PROPERTY.
  (a) As an alternative to paying for an interest in real property or
  a real property right with a single fixed payment, an authority may,
  with the property owner's consent, pay the owner by means of a
  participation payment.
         (b)  A right to receive a participation payment under this
  section is subordinate to any right to receive a fee as payment on
  the principal of or interest on a bond that is issued for the
  construction of the applicable segment.
         (c)  In this section, "participation payment" means an
  intangible legal right to receive a percentage of one or more
  identified fees related to a segment constructed by the authority.
         SECTION 19.  Sections 366.169(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  An authority may use real property, including submerged
  land, streets, alleys, and easements, owned by the state or another 
  [a local] governmental entity that the authority considers
  necessary for the construction or operation of a turnpike project.
         (b)  The state or another [a local] governmental entity
  having charge of public real property may consent to the use of the
  property for a turnpike project.
         (c)  Except as provided by Section 228.201, the state or
  another [a local] governmental entity may convey, grant, or lease
  to an authority real property, including highways and other real
  property already devoted to public use and rights or easements in
  real property, that may be necessary or convenient to accomplish
  the authority's purposes, including the construction or operation
  of a turnpike project.  A conveyance, grant, or lease under this
  section may be made without advertising, court order, or other
  action other than the normal action of the state or another [local]
  governmental entity necessary for a conveyance, grant, or lease.
         SECTION 20.  Section 366.170(c), Transportation Code, is
  amended to read as follows:
         (c)  An authority has full easements and rights-of-way
  through, across, under, and over any property owned by the state or
  another [any local] governmental entity that are necessary or
  convenient to construct, acquire, or efficiently operate a turnpike
  project or system under this chapter.  This subsection does not
  affect the obligation of the authority under other state law,
  including Section 373.102, to compensate or reimburse the state for
  the use or acquisition of an easement or right-of-way on property
  owned by or on behalf of the state.  An authority's use of property
  owned by or on behalf of the state is subject to any covenants,
  conditions, restrictions, or limitations affecting that property.
         SECTION 21.  Section 366.173, Transportation Code, is
  amended by amending Subsections (b), (c), and (d) and adding
  Subsection (h) to read as follows:
         (b)  Tolls must be set so that the aggregate of tolls from an
  authority's turnpike project or system, together with other revenue
  of the turnpike project or system:
               (1)  provides revenue sufficient to pay:
                     (A)  the cost of maintaining, repairing, and
  operating the turnpike project or system; [and]
                     (B)  the principal of and interest on the bonds
  issued for the turnpike project or system as those bonds become due
  and payable; and
                     (C)  any other payment obligations of the
  authority under a contract or agreement authorized under this
  chapter; and
               (2)  creates reserves for a purpose listed under
  Subdivision (1).
         (c)  Tolls are not subject to supervision or regulation by
  any state agency or other [local] governmental entity.
         (d)  Tolls and other revenue derived from a turnpike project
  or system for which bonds are issued, except the part necessary to
  pay the cost of maintenance, repair, and operation and to provide
  reserves for those costs as may be provided in the bond proceedings,
  shall be set aside at regular intervals as may be provided in the
  bond resolution or trust agreement in a sinking fund that is pledged
  to and charged with the payment of:
               (1)  interest on the bonds as it becomes due;
               (2)  principal of the bonds as it becomes due;
               (3)  necessary charges of paying agents for paying
  principal and interest; [and]
               (4)  the redemption price or the purchase price of
  bonds retired by call or purchase as provided by the bond
  proceedings; and
               (5)  any amounts due under credit agreements.
         (h)  Notwithstanding any other provision of this chapter, an
  authority may pledge all or any part of its revenue and any other
  funds available to the authority to the payment of any obligations
  of the authority under a contract or agreement authorized by this
  chapter.
         SECTION 22.  Section 366.175, Transportation Code, is
  amended to read as follows:
         Sec. 366.175.  USE OF [SURPLUS] REVENUE. The board of an
  authority may by resolution authorize the use of [surplus] revenue
  of a turnpike project or system to pay the costs of another turnpike
  project or system [other than a project financed under Subchapter
  G]. The board may in the resolution prescribe terms for the use of
  the revenue, including the pledge of the revenue, but may not take
  an action under this section that violates, impairs, or is
  inconsistent with a bond resolution, trust agreement, or indenture
  governing the use of the [surplus] revenue.
         SECTION 23.  Section 366.176(b), Transportation Code, is
  amended to read as follows:
         (b)  An authority is exempt from payment of development fees,
  utility connection fees, assessments, and service fees imposed or
  assessed by a county, municipality, road and utility district,
  river authority, any other [state or local] governmental entity, or
  any property owners' or homeowners' association.
         SECTION 24.  Section 366.182(c), Transportation Code, is
  amended to read as follows:
         (c)  An authority may contract with any [state or local]
  governmental entity for the services of peace officers of that
  entity [agency].
         SECTION 25.  Section 366.302(a), Transportation Code, is
  amended to read as follows:
         (a)  An authority may enter into an agreement with a public
  or private entity, including a toll road corporation, the United
  States, a state of the United States, the United Mexican States, a
  state of the United Mexican States, or a [local] governmental
  entity, [or another political subdivision,] to permit the entity,
  jointly with the authority, to study the feasibility of a turnpike
  project or system or to acquire, design, finance, construct,
  maintain, repair, operate, extend, or expand a turnpike project or
  system. An authority and a private entity jointly may enter into an
  agreement with another governmental entity to study the feasibility
  of a turnpike project or system or to acquire, design, finance,
  construct, maintain, repair, operate, extend, or expand a turnpike
  project or system.
         SECTION 26.  Section 366.303, Transportation Code, is
  amended to read as follows:
         Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND [LOCAL]
  GOVERNMENTAL ENTITIES. (a) A [local] governmental entity [other
  than a nonprofit corporation] may, consistent with the Texas
  Constitution:
               (1)  [,] issue bonds or enter into and make payments
  under agreements with an authority to acquire, construct, maintain,
  or operate a turnpike project or system, whether inside or outside
  the geographic boundaries of the governmental entity; and
               (2)  make payments under any related credit agreements.
         (a-1)  Agreements under Subsection (a) may include
  agreements for the governmental entity to pay the principal of, and
  interest on, bonds, notes, or other obligations issued by the
  authority.
         (a-2)  The governmental entity may levy and collect taxes to
  pay the interest on [the] bonds issued under Subsection (a) and to
  provide a sinking fund for the redemption of the bonds.
         (b)  In addition to the powers provided by Subsection (a), a
  [local] governmental entity may, within any applicable
  constitutional limitations, agree with an authority to:
               (1)  issue bonds or enter into and make payments under
  an agreement to acquire, construct, maintain, or operate any
  portion of a turnpike project or system of that authority;
               (2)  create:
                     (A)  a taxing district;
                     (B)  a transportation reinvestment zone under
  Subchapter E, Chapter 222; or
                     (C)  an entity to promote economic development;
  and
               (3)  collect and remit to an authority taxes, fees, or
  assessments collected for purposes of developing turnpike projects
  or systems.
         (b-1)  An agreement under Subsection (b) may include a means
  for a governmental entity to pledge or otherwise provide funds for a
  transportation project that benefits the governmental entity to be
  developed by the authority.
         (c)  To make payments under an agreement under Subsection
  (b), to pay the interest on bonds issued under Subsection (b), or to
  provide a sinking fund for the bonds or the agreement [contract], a
  [local] governmental entity may:
               (1)  pledge revenue from any available source,
  including annual appropriations;
               (2)  levy and collect taxes;
               (3)  use funds deposited in a tax increment account
  established for a transportation reinvestment zone under
  Subchapter E, Chapter 222; or
               (4) [(3)]  provide for a combination of Subdivisions
  (1), [and] (2), and (3).
         (d)  The term of an agreement under this section may not
  exceed 40 years.
         (e)  Any election required to permit action under this
  subchapter must be held in conformity with Chapter 1251, Government
  Code, or other law applicable to the [local] governmental entity.
         (f)  The governing body of any governmental entity issuing
  bonds, notes, or other obligations or entering into agreements
  under this section may exercise the authority granted to the
  governing body of an issuer with regard to issuance of obligations
  under Chapter 1371, Government Code, except that the prohibition in
  that chapter on the repayment of an obligation with ad valorem taxes
  does not apply to an issuer exercising the authority granted by this
  section.
         (g)  An agreement under this section may contain repayment or
  reimbursement obligations of an authority.
         SECTION 27.  This Act takes effect September 1, 2013.