85R4512 JTS-D
 
  By: Burkett H.B. No. 772
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a limitation on the amount of tolls and other charges
  that may be imposed by toll project entities for the use of toll
  projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 228.012(a) and (b), Transportation
  Code, are amended to read as follows:
         (a)  The department shall create a separate account in the
  state highway fund to hold payments received by the department
  under a comprehensive development agreement [and the surplus
  revenue of a toll project or system].  The department shall create
  subaccounts in the account for each project, system, or region.  
  Interest earned on money in a subaccount shall be deposited to the
  credit of that subaccount.
         (b)  The department shall hold money in a subaccount in trust
  for the benefit of the region in which a project or system is
  located and may assign the responsibility for allocating money in a
  subaccount to a metropolitan planning organization in which the
  region is located for projects approved by the department.  At the
  time the project is approved by the department money shall be
  allocated and distributed to projects authorized by Section
  228.0055 [or Section 228.006, as applicable].
         SECTION 2.  Section 228.053, Transportation Code, is amended
  by amending Subsections (b) and (f) and adding Subsection (b-1) to
  read as follows:
         (b)  The tolls shall be set so that[, at a minimum,] the
  aggregate of tolls from the toll project or system, together with
  other revenue and contributions, if any,[:
               [(1)]  provides a fund sufficient, but not more than
  necessary [with other revenue and contributions, if any], to:
               (1)  pay:
                     (A)  the cost of maintaining, repairing, and
  operating the project or system; and
                     (B)  the principal of and interest on any
  outstanding [the] bonds issued [under Subchapter C] for the project
  or system as those bonds become due and payable; and
               (2)  create any required [creates] reserves for the
  purposes listed under Subdivision (1).
         (b-1)  After all outstanding bonds and other obligations
  secured by toll revenue of a toll project have been repaid or
  otherwise satisfied, tolls collected for use of the project may be
  used only for the maintenance and operation of the portion of the
  project for which the tolls were collected.
         (f)  The revenue and disbursements for each toll project or
  system shall be kept separately.  The revenue from one project may
  not be used to pay the cost of another project except as authorized
  by Section [Sections] 228.0055 [and 228.006].
         SECTION 3.  Section 228.104(a), Transportation Code, is
  amended to read as follows:
         (a)  The principal of, interest on, and any redemption
  premium on bonds issued by the commission under this subchapter are
  payable solely from:
               (1)  the revenue of the toll project or system for which
  the bonds are issued, including tolls pledged to pay the bonds;
               (2)  the proceeds of bonds issued for the project or
  system;
               (3)  the amounts deposited in a debt service reserve
  fund as required by the trust agreement securing bonds issued for
  the project or system;
               (4)  amounts received under a credit agreement relating
  to the project or system for which the bonds are issued; and
               (5)  [surplus revenue of another project or system as
  authorized by Section 228.006; and
               [(6)] amounts received by the department:
                     (A)  as pass-through tolls under Section 222.104;
                     (B)  under an agreement with a local governmental
  entity entered into under Section 228.254;
                     (C)  under other agreements with a local
  governmental entity relating to the project or system for which the
  bonds are issued; and
                     (D)  under a comprehensive development agreement
  entered into under Section 223.201.
         SECTION 4.  Section 228.105, Transportation Code, is amended
  to read as follows:
         Sec. 228.105.  SOURCES OF PAYMENT OF AND SECURITY FOR TOLL
  REVENUE BONDS.  Notwithstanding any other provisions of this
  subchapter, toll revenue bonds issued by the commission may:
               (1)  be payable from and secured by:
                     (A)  payments made under an agreement with a local
  governmental entity as provided by Section 228.254;
                     (B)  the proceeds of bonds issued for the toll
  project or system; or
                     (C)  amounts deposited in a debt service reserve
  fund as required by the trust agreement securing bonds issued for
  the project or system; [or
                     [(D)     surplus revenue of another toll project or
  system as authorized by Section 228.006;] and
               (2)  state on their faces any pledge of revenue or taxes
  and any security for the bonds under the agreement.
         SECTION 5.  Section 284.069, Transportation Code, is amended
  to read as follows:
         Sec. 284.069.  TOLLS AND CHARGES.  (a)  A [If bonds under
  this chapter are payable in whole or in part from project revenue,
  the] county shall impose tolls and charges for the use of a project
  that are, together with other money or revenues available for the
  project, including ad valorem tax, sufficient, but not more than
  necessary, to:
               (1)  pay the maintenance and operating expenses of the
  project;
               (2)  pay the principal of, premium of, if any, and
  interest on any outstanding [the] bonds when due;
               (3)  establish a reserve for payment of any outstanding
  bond principal, premium, and interest; and
               (4)  establish an adequate fund for project
  depreciation and replacement.
         (b)  After all outstanding bonds and other obligations
  secured by toll revenue and charges of a project have been repaid or
  otherwise satisfied, tolls and charges collected for use of the
  project may be used only for the maintenance and operation of the
  portion of the project for which the tolls and charges were
  collected.
         SECTION 6.  Section 365.041, Transportation Code, is amended
  to read as follows:
         Sec. 365.041.  AMOUNT OF TOLLS. (a)  Revenue from tolls and
  other charges under Section 365.040 may be sufficient, but not more
  than necessary, to:
               (1)  pay all expenses necessary to maintain and operate
  the toll road project;
               (2)  make necessary payments and otherwise comply with
  any permit or franchise for maintenance or operation of the toll
  road project;
               (3)  pay the principal and redemption price of and
  interest on all bonds that the district is obligated to pay,
  regardless of whether the bonds were issued as revenue bonds;
               (4)  pay all sinking fund or reserve fund payments
  agreed to be made in connection with bonds or other obligations as
  they become due and payable to establish a reasonable depreciation
  and emergency fund;
               (5)  comply with any agreement made with the holders of
  the district's bonds or other obligations or with another person on
  the bondholder's behalf; and
               (6)  recover a reasonable rate of return on invested
  capital.
         (b)  After all outstanding bonds and other obligations
  secured by toll revenue and other charges of a toll road project
  have been repaid or otherwise satisfied, tolls and other charges
  collected for use of the project may be used only for the
  maintenance and operation of the portion of the project for which
  the tolls and other charges were collected.
         SECTION 7.  Section 366.113(a), Transportation Code, is
  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 provided by Subchapter
  G;
               (3)  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]; and
               (4)  amounts received under a credit agreement relating
  to the turnpike project or system for which the bonds are issued.
         SECTION 8.  Section 366.173, Transportation Code, is amended
  by amending Subsection (b) and adding Subsection (b-1) 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, but not more than
  necessary, to:
               (1)  pay:
                     (A)  the cost of maintaining, repairing, and
  operating the turnpike project or system; and
                     (B)  the principal of and interest on any
  outstanding [the] bonds issued for the turnpike project or system
  as those bonds become due and payable; and
               (2)  create any required [creates] reserves for a
  purpose listed under Subdivision (1).
         (b-1)  After all outstanding bonds and other obligations
  secured by toll revenue of a turnpike project have been repaid or
  otherwise satisfied, tolls collected for use of the project may be
  used only for the maintenance and operation of the portion of the
  project for which the tolls were collected.
         SECTION 9.  Section 370.113(a), Transportation Code, is
  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 transportation project for
  which the bonds are issued;
               (2)  payments made under an agreement with the
  commission, the department, or other governmental entity as
  authorized by this chapter;
               (3)  money derived from any other source available to
  the authority, other than money derived from a transportation
  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
  transportation project or system, other than a turnpike project,
  has been pledged for that purpose;
               (4)  amounts received under a credit agreement relating
  to the transportation project for which the bonds are issued; and
               (5)  the proceeds of the sale of other bonds.
         SECTION 10.  Section 370.172, Transportation Code, is
  amended by amending Subsection (b) and adding Subsection (b-1) to
  read as follows:
         (b)  Tolls, fees, fares, or other charges must be set at
  rates or amounts so that the aggregate of tolls, fees, fares, or
  other charges from an authority's transportation project, together
  with other revenue of the transportation project[:
               [(1)]  provides revenue sufficient, but not more than
  necessary, to:
               (1)  pay:
                     (A)  the cost of maintaining, repairing, and
  operating the transportation project;
                     (B)  the principal of and interest on any
  outstanding bonds issued for the transportation project as those
  bonds become due and payable; and
                     (C)  any other payment obligations of an authority
  under a contract or agreement authorized under this chapter; and
               (2)  create any required [creates] reserves for a
  purpose listed under Subdivision (1).
         (b-1)  After all outstanding bonds and other obligations
  secured by toll revenue or fees, fares, or other charges of a
  transportation project have been repaid, tolls or fees, fares, or
  other charges collected for use of the project may be used only for
  the maintenance and operation of the portion of the project for
  which the amounts were collected.
         SECTION 11.  Subchapter B, Chapter 372, Transportation Code,
  is amended by adding Section 372.054 to read as follows:
         Sec. 372.054.  LIMIT ON TOLL COLLECTIONS. (a)  A toll
  project entity may not set tolls or other charges for use of a
  project in an amount that exceeds the amount necessary to:
               (1)  pay bonds and other obligations secured by the
  revenue as required by a bond resolution or trust agreement; and
               (2)  provide for the maintenance and operation of the
  project.
         (b)  After all outstanding bonds and other obligations
  secured by toll revenue and other charges of a transportation
  project have been repaid or otherwise satisfied, tolls and other
  charges collected for use of the project may be used only for the
  maintenance and operation of the portion of the project for which
  the tolls or charges were collected.
         SECTION 12.  The following provisions of the Transportation
  Code are repealed:
               (1)  Section 228.006;
               (2)  Section 228.109(d);
               (3)  Section 366.003(9-a);
               (4)  Section 366.037;
               (5)  Section 366.071;
               (6)  Section 366.072; and
               (7)  Section 366.175.
         SECTION 13.  The changes in law made by this Act to Sections
  228.104(a), 228.105, 366.113(a), and 370.113(a), Transportation
  Code, apply only to bonds or other obligations issued on or after
  the effective date of this Act.  Bonds or other obligations issued
  before the effective date of this Act are governed by the law in
  effect on the date the bonds were issued, and the former law is
  continued in effect for that purpose.
         SECTION 14.  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, 2017.