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A BILL TO BE ENTITLED
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AN ACT
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relating to the ability of a governmental entity to contract for the |
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development and operation of a transportation project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 370.003(8) and (14), Transportation |
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Code, are amended to read as follows: |
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(8) "Governmental entity" means a political |
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subdivision of the state, including a municipality or a county, a |
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political subdivision of a county, a group of adjoining counties, a |
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district organized or operating under Section 52, Article III, or |
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Section 59, Article XVI, Texas Constitution, the department or |
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another agency of the state, a rail district, a transit authority, a |
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nonprofit corporation, including a transportation corporation, |
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that is created under Chapter 431, or any other public entity or |
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instrumentality. |
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(14) "Transportation project" means: |
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(A) a turnpike project; |
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(B) a system; |
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(C) a passenger or freight rail facility, |
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including: |
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(i) tracks; |
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(ii) a rail line; |
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(iii) switching, signaling, or other |
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operating equipment; |
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(iv) a depot; |
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(v) a locomotive; |
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(vi) rolling stock; |
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(vii) a maintenance facility; and |
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(viii) other real and personal property |
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associated with a rail operation; |
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(D) a roadway with a functional classification |
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greater than a local road or rural minor collector; |
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(D-1) a bridge; |
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(E) a ferry; |
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(F) an airport, other than an airport that on |
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September 1, 2005, was served by one or more air carriers engaged in |
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scheduled interstate transportation, as those terms were defined by |
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14 C.F.R. Section 1.1 on that date; |
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(G) a pedestrian or bicycle facility; |
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(H) an intermodal hub; |
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(I) an automated conveyor belt for the movement |
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of freight; |
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(J) a border crossing inspection station, |
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including: |
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(i) a border crossing inspection station |
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located at or near an international border crossing; and |
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(ii) a border crossing inspection station |
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located at or near a border crossing from another state of the |
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United States and not more than 50 miles from an international |
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border; |
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(K) an air quality improvement initiative; |
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(L) a public utility facility; |
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(M) a transit system; |
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(M-1) a parking area, structure, or facility, or |
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a collection device for parking fees; |
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(N) if applicable, projects and programs listed |
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in the most recently approved state implementation plan for the |
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area covered by the authority, including an early action compact; |
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(O) improvements in a transportation |
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reinvestment zone designated under Subchapter E, Chapter 222; and |
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(P) port security, transportation, or facility |
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projects eligible for funding under Section 55.002; and |
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(Q) an aerial cable car or aerial tramway for the |
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transportation of persons or property, or both. |
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SECTION 2. Section 370.303, Transportation Code, is amended |
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to read as follows: |
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Sec. 370.303. AGREEMENTS BETWEEN AUTHORITY AND [LOCAL] |
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GOVERNMENTAL ENTITIES. (a) A governmental entity may, consistent |
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with the Texas Constitution, issue bonds, notes, or other |
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obligations or enter into and make payments under agreements with |
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an authority in connection with the financing, acquisition, |
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construction, or operation of a transportation project by an |
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authority, whether inside or outside the geographic boundaries of |
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the governmental entity, including agreements to pay the principal |
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of, and interest on, bonds, notes, or other obligations issued by |
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the authority and make payments under any related credit |
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agreements. The entity may impose and collect taxes to pay the |
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interest on the bonds and to provide a sinking fund for the |
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redemption of the bonds. |
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(b) In addition to the powers provided by Subsection (a), a |
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governmental entity may, to the extent constitutionally permitted, |
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agree with an authority to: |
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(1) issue bonds, notes, or other obligations; |
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(2) create: |
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(A) a taxing district; |
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(B) a transportation reinvestment zone under |
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Subchapter E, Chapter 222; or |
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(C) an entity to promote economic development; |
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(3) collect and remit to an authority taxes, fees, or |
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assessments collected for purposes of developing transportation |
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projects; |
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(4) fund public improvements to promote economic |
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development; or |
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(5) enter into and make payments under an agreement to |
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acquire, construct, maintain, or operate any portion of a |
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transportation project of the authority. |
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(b-1) An agreement under Subsections (a) or (b) may include |
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a means for a [local] governmental entity to pledge or otherwise |
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provide funds for a transportation project that benefits the |
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governmental entity to be developed by the authority. |
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(c) To make payments under an agreement under Subsection |
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(b), to pay the interest on bonds issued under Subsection (b), or to |
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provide a sinking fund for the bonds or the agreement, a |
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governmental entity may: |
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(1) pledge revenue from any available source, |
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including annual appropriations; |
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(2) impose and collect taxes; or |
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(3) pledge revenue and impose and collect taxes. |
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(d) The term of an agreement under this section may not |
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exceed 40 years. |
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(e) An election required to authorize action under this |
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subchapter must be held in conformity with Chapter 1251, Government |
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Code, or other law applicable to the governmental entity. |
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(f) The governing body of any governmental entity issuing |
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bonds, notes, or other obligations or entering into agreements |
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under this section may exercise the authority granted to the |
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governing body of an issuer with regard to issuance of obligations |
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under Chapter 1371, Government Code, except that the prohibition in |
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that chapter on the repayment of an obligation with ad valorem taxes |
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does not apply to an issuer exercising the authority granted by this |
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section. |
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(g) An agreement under this section may contain repayment or |
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reimbursement obligations of an authority. |
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SECTION 3. 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, 2019. |