Bill Text: TX SB1730 | 2013-2014 | 83rd Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to comprehensive development agreements of the Texas Department of Transportation or a regional mobility authority.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB1730 Detail]

Download: Texas-2013-SB1730-Engrossed.html

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By: Nichols S.B. No. 1730

A BILL TO BE ENTITLED
AN ACT
relating to comprehensive development agreements of the Texas
Department of Transportation or a regional mobility authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections (a), (b), (f), (g), (i), (j), (k),
and (l), Section 223.201, Transportation Code, are amended to read
as follows:
(a) Subject to Section 223.202, the department may enter
into a comprehensive development agreement with a private entity to
design, develop, finance, construct, maintain, repair, operate,
extend, or expand a:
(1) toll project;
(2) state highway improvement project that includes
both tolled and nontolled lanes and may include nontolled
appurtenant facilities;
(3) state highway improvement project in which the
private entity has an interest in the project; [or]
(4) state highway improvement project financed wholly
or partly with the proceeds of private activity bonds, as defined by
Section 141(a), Internal Revenue Code of 1986; or
(5) nontolled state highway improvement project
authorized by the legislature.
(b) In this subchapter, "comprehensive development
agreement" means an agreement that, at a minimum, provides for the
design and construction, reconstruction, rehabilitation,
expansion, or improvement of a project described in Subsection (a)
and may also provide for the financing, acquisition, maintenance,
or operation of a project described in Subsection (a).
(f) The department may enter into a comprehensive
development agreement only for all or part of:
(1) the State Highway 99 (Grand Parkway) project;
(2) the Interstate Highway 35E managed lanes project
in Dallas and Denton Counties from Interstate Highway 635 to U.S.
Highway 380;
(3) the Interstate Highway 35W project in Tarrant
County from Interstate Highway 30 to State Highway 114 [North
Tarrant Express project in Tarrant and Dallas Counties, including:
[(A) on State Highway 183 from State Highway 121
to State Highway 161 (Segment 2E);
[(B) on Interstate Highway 35W from Interstate
Highway 30 to State Highway 114 (Segments 3A, 3B, and 3C); and
[(C) on Interstate Highway 820 from State Highway
183 North to south of Randol Mill Road (Segment 4)];
(4) the State Highway 183 managed lanes project in
Tarrant and Dallas Counties [County] from State Highway 121 [161]
to Interstate Highway 35E;
(5) the Interstate Highway 35E/U.S. Highway 67
Southern Gateway project in Dallas County, including:
(A) Interstate Highway 35E from 8th Street to
Interstate Highway 20; and
(B) U.S. Highway 67 from Interstate Highway 35E
to Farm-to-Market Road 1382 (Belt Line Road) [State Highway 249
project in Harris and Montgomery Counties from Spring Cypress Road
to Farm-to-Market Road 1774];
(6) the State Highway 288 project from U.S. Highway 59
to south of State Highway 6 in Brazoria County and Harris County;
[and]
(7) the U.S. Highway 290 [Hempstead] managed lanes
project in Harris County from Interstate Highway 610 to State
Highway 99;
(8) the Interstate Highway 820 project from State
Highway 183 to Randol Mill Road;
(9) the State Highway 114 project in Dallas County
from State Highway 121 to State Highway 183;
(10) the Loop 12 project in Dallas County from State
Highway 183 to Interstate Highway 35E;
(11) the Loop 9 project in Dallas and Ellis Counties
from Interstate Highway 20 to U.S. Highway 67; and
(12) the U.S. Highway 181 Harbor Bridge project in
Nueces County between U.S. Highway 181 at Beach Avenue and
Interstate Highway 37.
(g) The department may combine in a comprehensive
development agreement under this subchapter:
(1) a toll project and a rail facility as defined by
Section 91.001; or
(2) two or more projects described by Subsection (f).
(i) The authority to enter into a comprehensive development
agreement expires:
(1) August 31, 2017, for a project described by
Subsection (f), other than the State Highway 99 (Grand Parkway)
project and the State Highway 183 managed lanes project; and
(2) [expires] August 31, 2015, for the State Highway
183 managed lanes project.
(j) Before the department may enter into a comprehensive
development agreement under Subsection (f), the department must:
(1) for a project other than the State Highway 99
(Grand Parkway) project, obtain, not later than August 31, 2017
[2013], the appropriate environmental clearance:
(A) for the project; or
(B) for the initial or base scope of the project
if the project agreement provides for the phased construction of
the [for any project other than the State Highway 99 (Grand
Parkway)] project; and
(2) present to the commission a full financial plan
for the project, including costing methodology and cost proposals.
(k) Not later than December 1, 2014 [2012], the department
shall provide [present] a report to the commission on the status of
a project described by Subsection (f). The report must include:
(1) the status of the project's environmental
clearance;
(2) an explanation of any project delays; and
(3) if the procurement is not completed, the
anticipated date for the completion of the procurement.
(l) In this section, "environmental clearance" means:
(1) a finding of no significant impact has been issued
for the project or, as applicable, for the initial or base scope of
the project; or
(2) for a project for which an environmental impact
statement is prepared, a record of decision has been issued for that
project or, as applicable, for the initial or base scope of the
project.
SECTION 2. Subsections (a), (c), (e), and (f), Section
223.2011, Transportation Code, are amended to read as follows:
(a) Notwithstanding Sections 223.201(f) and 370.305(c), the
department or an authority under Section 370.003 may enter into a
comprehensive development agreement relating to improvements to,
or construction of, all or part of:
(1) the Loop 1 (MoPac Improvement) project from
Farm-to-Market Road 734 to Cesar Chavez Street;
(2) the U.S. 183 (Bergstrom Expressway) project from
Springdale Road to Patton Avenue; [or]
(3) a project consisting of the construction of:
(A) the Outer Parkway Project in Cameron County
from U.S. Highway 77 [77/83] to Farm-to-Market Road 1847; and
(B) the South Padre Island Second Access Causeway
Project from State Highway 100 to Park Road 100;
(4) the Loop 49 project from Interstate 20 to U.S.
Highway 69 (Lindale Relief Route) and from State Highway 110 to U.S.
Highway 259 (Segments 6 and 7); and
(5) the Loop 375 Border Highway West project in El Paso
County from Race Track Drive to Interstate Highway 10.
(c) Not later than December 1, 2014 [2012], the department
or the authority, as applicable, shall provide [present] a report
to the commission on the status of a project described by Subsection
(a). The report must include:
(1) the status of the project's environmental
clearance;
(2) an explanation of any project delays; and
(3) if the procurement is not completed, the
anticipated date for the completion of the procurement.
(e) In this section, "environmental clearance" means:
(1) a finding of no significant impact has been issued
for the project or, as applicable, for the initial or base scope of
the project; or
(2) for a project for which an environmental impact
statement is prepared, a record of decision has been issued for that
project or, as applicable, for the initial or base scope of the
project.
(f) The authority to enter into a comprehensive development
agreement under this section expires August 31, 2017 [2015].
SECTION 3. Section 371.101, Transportation Code, is amended
to read as follows:
Sec. 371.101. TERMINATION FOR CONVENIENCE.
(a) A comprehensive development agreement under which a private
participant receives the right to operate and collect revenue from
a toll project must contain a provision authorizing the toll
project entity to terminate the agreement for convenience and to
purchase, under terms agreed to by the parties:
(1) the interest of the private participant in the
comprehensive development 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) A comprehensive development agreement described by
Subsection (a) must include a price breakdown stating a specific
price for the purchase of the private participant's interest at
specified intervals from the date the toll project opens, of not
less than two years and not more than five years, over the term of
the agreement.
(c) The provision must authorize the toll project entity to
terminate the comprehensive development agreement and to purchase
the private participant's interest at any time during a specified
interval at the lesser of:
(1) the price stated for that interval; or
(2) the greater of:
(A) the then fair market value of the private
participant's interest, plus or minus any other amounts specified
in the comprehensive development agreement; or
(B) an amount equal to the amount of outstanding
debt specified in the comprehensive development agreement, plus or
minus any other amounts specified in the comprehensive development
agreement.
(d) A toll project entity shall include in a request for
proposals for an agreement described by Subsection (a) a request
for the proposed price breakdown described by Subsection (b) and
shall assign points to and score each proposer's price breakdown in
the evaluation of proposals.
(e) A private participant 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 participant 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.
(f) A toll project entity must notify the private
participant of the toll project entity's intention to purchase the
private participant's interest under this section not less than six
months before the date of the purchase.
(g) Subsections (b), (c), (d), (e), and (f) do not apply to a
project for which a request for proposals was issued before January
1, 2013.
(h) If a project requires expansion or reconstruction in a
manner that differs from the manner provided in the original
project scope or schedule, the price for terminating the
comprehensive development agreement may be adjusted to reflect the
changes in the agreement. [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
amount.
[(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 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, 2013.