Bill Text: TX HB505 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the cessation of tolls by toll project entities in certain circumstances.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2019-04-03 - Referred directly to subcommittee by chair [HB505 Detail]

Download: Texas-2019-HB505-Introduced.html

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86R1017 JAM-D
By: Metcalf H.B. No. 505

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. Chapter 372, Transportation Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. CESSATION OF TOLLS
Sec. 372.151. DEFINITION. In this subchapter, "toll
cessation date" means the date on which a project is scheduled to
become a part of the state highway system maintained by the
commission under Section 372.152.
Sec. 372.152. CESSATION OF TOLLS AFTER BOND REQUIREMENTS
MET. (a) Except as provided by Section 372.153, 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 revenue 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).
Sec. 372.153. ELECTION TO CONTINUE TOLLS AFTER TOLL
CESSATION DATE. (a) A toll project entity may extend by five years
a toll cessation date of a toll project if the extension is approved
by a majority of the votes cast at an election held for that
purpose:
(1) on a uniform election date before the toll
cessation date;
(2) in:
(A) the territory of the toll project entity; or
(B) if the toll project entity is the department,
each county in which the toll project is located; and
(3) by:
(A) the toll project entity; or
(B) if the toll project entity is the department,
each county in which the toll project is located.
(b) After an initial election under this section at which an
extension is approved, the toll project entity may use the process
established by this subchapter to obtain voter approval for
subsequent five-year extensions of the toll cessation date for the
project.
(c) At an election ordered under this section, the ballots
must be printed to permit voting for or against the proposition:
"The continuation of tolls for a period of five years for (toll
project)."
Sec. 372.154. REQUEST FOR ELECTION BY DEPARTMENT. (a) If
the department wishes to extend a toll cessation date for a toll
project the department shall, not later than nine months before the
toll cessation date, send to the commissioners court of each county
in which the toll project is located notice of:
(1) the toll cessation date for the project; and
(2) the department's intention to request an election
for an extension of tolling authority for the project.
(b) Each commissioners court that receives notice under
Subsection (a) shall, as soon as practicable after receiving the
notice, propose to the department:
(1) one or more uniform election dates occurring
before the toll cessation date that would allow the county
sufficient time to comply with applicable provisions of law for
holding the election; and
(2) the date by which a request must be submitted by
the department in order for the county to have sufficient time to
comply with applicable provisions of law for holding the election.
(c) If the department submits to a commissioners court a
request for an election for an extension of tolling authority for
the project that complies with Subsection (b), the commissioners
court shall hold the requested election.
Sec. 372.155. CESSATION OF TOLLS AFTER EXTENSION OF TOLL
CESSATION DATE. A toll project becomes part of the state highway
system and the commission shall maintain the project without tolls
if a five-year toll cessation date extension authorized by an
election under this subchapter expires and a succeeding five-year
extension has not been approved at an election under this
subchapter.
SECTION 2. 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, 372.152, and 372.155, 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 3. Sections 284.008(c) and (d), Transportation
Code, are repealed.
SECTION 4. 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, 2019.