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A BILL TO BE ENTITLED
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AN ACT
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relating to comprehensive development agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 223, Transportation Code, |
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is amended by adding Section 223.2011 to read as follows: |
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Sec. 223.2011. LIMITED AUTHORITY FOR CERTAIN PROJECTS USING |
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COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) Notwithstanding |
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Sections 223.201(f) and (i), the department may enter into a |
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comprehensive development agreement relating to managed lane |
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improvements to State Highway 183 between State Highway 161 and |
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Interstate Highway 35E. |
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(b) This section expires August 31, 2013. |
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SECTION 2. Section 371.101, Transportation Code, is amended |
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to read as follows: |
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Sec. 371.101. TERMINATION BY PURCHASE [FOR CONVENIENCE]. |
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(a) A comprehensive development agreement must contain a |
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provision authorizing the toll project entity to purchase, under |
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terms agreed to by the parties: |
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(1) the interest of a private participant in the toll |
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project that is the subject of the agreement; and |
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(2) related property, including any interest in a |
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highway or other facility designed, developed, financed, |
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constructed, operated, or maintained under the agreement. |
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(b) The provision must include a schedule stating a specific |
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price for the purchase of the toll project at certain intervals from |
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the date the project opens, not less than one year and not to exceed |
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five years, over the term of the agreement. |
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(c) The provision must authorize the toll project entity to |
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purchase the private entity's interest at a stated interval in an |
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amount not to exceed the lesser of: |
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(1) the price stated for that interval; or |
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(2) the greater of: |
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(A) the then fair market value of the private |
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entity's interest; or |
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(B) an amount equal to the amount of outstanding |
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debt at that time, as specified in the comprehensive development |
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agreement. |
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(d) A toll project entity may not, under any circumstance, |
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purchase the private entity's interest for an amount higher than |
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the stated interval amount. |
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(e) A contract to purchase the private entity's interest at |
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the then fair market value as described by Subsection (c)(2)(A) |
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must contain a provision, mutually agreed on by the toll project |
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entity and the private participant, detailing the calculation used |
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to determine that value. |
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(f) The toll project entity shall request a proposed |
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termination-by-purchase schedule in each request for detailed |
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proposals and shall consider and score each schedule in each |
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evaluation of proposals. |
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(g) A private entity shall, not later than 12 months before |
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the date that a new price interval takes effect, notify the toll |
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project entity of the beginning of the price interval. The toll |
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project entity must notify the private entity as to whether it will |
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exercise the option to purchase under this section not later than |
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six months after the date it receives notice under this subsection. |
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(h) A toll project entity must notify the private entity of |
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the toll project entity's intention to purchase the private |
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entity's interest under this section not less than six months |
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before the date of the purchase. [A toll project entity having
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rulemaking authority by rule and a toll project entity without
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rulemaking authority by official action shall develop a formula for
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making termination payments to terminate a comprehensive
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development agreement under which a private participant receives
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the right to operate and collect revenue from a toll project.
A
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formula must calculate an estimated amount of loss to the private
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participant as a result of the termination for convenience.
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[(b)
The formula shall be based on investments,
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expenditures, and the internal rate of return on equity under the
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agreed base case financial model as projected over the original
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term of the agreement, plus an agreed percentage markup on that
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amount.
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[(c)
A formula under Subsection (b) may not include any
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estimate of future revenue from the project, if not included in an
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agreed base case financial model under Subsection (b).
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Compensation to the private participant upon termination for
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convenience may not exceed the amount determined using the formula
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under Subsection (b).] |
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SECTION 3. Sections 371.103(b) and (c), Transportation |
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Code, are amended to read as follows: |
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(b) Except as provided by Subsection (c), a comprehensive |
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development agreement may contain a provision authorizing the toll |
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project entity to compensate the private participant in the |
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agreement for the loss of toll revenues attributable to the |
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construction by the entity of a limited access highway project |
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located within an area that extends up to four miles from either |
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side of the centerline of the project developed under the |
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agreement, less the private participant's decreased operating and |
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maintenance costs attributable to the highway project, if any. A |
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provision under this subsection may be effective only for a period |
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of 30 years or less from the effective date of the agreement. |
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(c) A comprehensive development agreement may not require |
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the toll project entity to provide compensation for the |
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construction of: |
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(1) a highway project contained in the state |
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transportation plan or a transportation plan of a metropolitan |
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planning organization in effect on the effective date of the |
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agreement; |
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(2) work on or improvements to a highway project |
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necessary for improved safety, or for maintenance or operational |
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purposes; |
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(3) a high occupancy vehicle exclusive lane addition |
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or other work on any highway project that is required by an |
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environmental regulatory agency; [or] |
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(4) a transportation project that provides a mode of |
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transportation that is not included in the project that is the |
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subject of the comprehensive development agreement; or |
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(5) a highway designated an interstate highway. |
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SECTION 4. Sections 371.101 and 371.103, Transportation |
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Code, as amended by this Act, apply only to a comprehensive |
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development agreement entered into on or after the effective date |
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of this Act. A comprehensive development agreement entered into |
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before the effective date of this Act is governed by the law in |
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effect on the date the agreement was entered into, and the former |
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law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |