87R8325 JAM-D
 
  By: Kolkhorst, Hall S.B. No. 756
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the cessation of tolls by toll project entities in
  certain circumstances.
         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(f), Transportation Code, is
  amended to read as follows:
         (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 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 6.  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 7.  Section 372.054(b), Transportation Code, as
  added by Chapter 744 (H.B. 803), Acts of the 86th Legislature,
  Regular Session, 2019, is amended to read as follows:
         (b)  Not later than the 180th day after the last day of a toll
  project entity's fiscal year, the entity shall publish on the
  entity's Internet website a report on the entity's financial data,
  including:
               (1)  the final maturity of all bonds issued by the
  entity for a toll project or system;
               (2)  toll revenue for each toll project for the
  previous fiscal year;
               (3)  an accounting of total revenue collected and
  expenses incurred by the entity for the previous fiscal year, such
  as debt service, maintenance and operation costs, and any other
  miscellaneous expenses[, and any surplus revenue]; and
               (4)  a capital improvement plan with proposed or
  expected capital expenditures over a period determined by the
  entity.
         SECTION 8.  Subchapter B, Chapter 372, Transportation Code,
  is amended by adding Section 372.059 to read as follows:
         Sec. 372.059.  CESSATION OF TOLLS. (a) A toll project
  becomes a part of the state highway system and the commission shall
  maintain the project without tolls when the costs of acquisition
  and construction of the project have been paid and:
               (1)  all of the bonds and interest on the bonds that are
  payable from or secured by revenues of the project have been paid by
  the issuer of the bonds or another person with the consent or
  approval of the issuer; or
               (2)  a sufficient amount for the payment of all bonds
  and interest on the bonds to maturity has been set aside by the
  issuer of the bonds or another person with the consent or approval
  of the issuer in a trust fund held for the benefit of the
  bondholders.
         (b)  A toll project entity may not amend a financing or other
  agreement in a manner that would extend the date by which a toll
  project would become part of the state highway system under
  Subsection (a).
         SECTION 9.  Section 373.003, Transportation Code, is amended
  to read as follows:
         Sec. 373.003.  PROJECT OWNED IN PERPETUITY.  Unless a toll
  project is leased, sold, conveyed, or otherwise transferred to
  another governmental entity in accordance with applicable law,
  including Sections 228.151, 284.011, 366.036, 366.172, [and]
  370.171, and 372.059, a toll project procured by the department or a
  local toll project entity determined by the process under
  Subchapter B is owned by that entity in perpetuity.
         SECTION 10.  The following provisions of the Transportation
  Code are repealed:
               (1)  Section 228.006;
               (2)  Section 228.109(d);
               (3)  Sections 284.008(c) and (d);
               (4)  Section 366.003(9-a);
               (5)  Section 366.037;
               (6)  Section 366.071;
               (7)  Section 366.072(b); and
               (8)  Section 366.175.
         SECTION 11.  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, 2021.