CHAPTER 222. FUNDING AND FEDERAL AID
TRANSPORTATION CODE
TITLE 6. ROADWAYS
SUBTITLE B. STATE HIGHWAY SYSTEM
CHAPTER 222. FUNDING AND FEDERAL AID
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 222.001. USE OF STATE HIGHWAY FUND. (a) Money that is
required to be used for public roadways by the Texas Constitution
or federal law and that is deposited in the state treasury to the
credit of the state highway fund, including money deposited to
the credit of the state highway fund under Title 23, United
States Code, may be used only:
(1) to improve the state highway system;
(2) to mitigate adverse environmental effects that result
directly from construction or maintenance of a state highway by
the department; or
(3) by the Department of Public Safety to police the state
highway system and to administer state laws relating to traffic
and safety on public roads.
(b) Notwithstanding Section 222.103, the department may not
pledge or otherwise encumber money deposited in the state highway
fund to:
(1) guarantee a loan obtained by a public or private entity for
costs associated with a toll facility of the public or private
entity; or
(2) insure bonds issued by a public or private entity for costs
associated with a toll facility of the public or private entity.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
771, Sec. 1, eff. June 19, 2009.
Sec. 222.002. USE OF STATE HIGHWAY FUND FOR DEPARTMENT
FUNCTIONS. Money in the state highway fund that is not required
to be spent for public roadways by the Texas Constitution or
federal law may be used for any function performed by the
department.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 222.003. ISSUANCE OF BONDS SECURED BY STATE HIGHWAY FUND.
(a) The commission may issue bonds and other public securities
secured by a pledge of and payable from revenue deposited to the
credit of the state highway fund.
(b) The aggregate principal amount of the bonds and other public
securities that are issued may not exceed $6 billion. The
commission may only issue bonds or other public securities in an
aggregate principal amount of not more than $1.5 billion each
year.
(c) Proceeds from the sale of bonds and other public securities
issued under this section shall be used to fund state highway
improvement projects.
(d) Of the aggregate principal amount of bonds and other public
securities that may be issued under this section, the commission
shall issue bonds or other public securities in an aggregate
principal amount of $1.2 billion to fund projects that reduce
accidents or correct or improve hazardous locations on the state
highway system. The commission by rule shall prescribe criteria
for selecting projects eligible for funding under this section.
In establishing criteria for the projects, the commission shall
consider accident data, traffic volume, pavement geometry, and
other conditions that can create or exacerbate hazardous roadway
conditions.
(e) The proceeds of bonds and other public securities issued
under this section may not be used for any purpose other than any
costs related to the bonds and other public securities and the
purposes for which revenues are dedicated under Section 7-a,
Article VIII, Texas Constitution. The proceeds of bonds and other
public securities issued under this section may not be used for
the construction of a state highway or other facility on the
Trans-Texas Corridor. For purposes of this section, the
"Trans-Texas Corridor" means the statewide system of multimodal
facilities under the jurisdiction of the department that is
designated by the commission, notwithstanding the name given to
that corridor.
(f) The commission may enter into credit agreements, as defined
by Chapter 1371, Government Code, relating to the bonds and other
public securities authorized by this section. The agreements may
be secured by and payable from the same sources as the bonds and
other public securities.
(g) All laws affecting the issuance of bonds and other public
securities by governmental entities, including Chapters 1201,
1202, 1204, 1207, 1231, and 1371, Government Code, apply to the
issuing of bonds and other public securities and the entering
into of credit agreements under this section.
(h) The proceeds of bonds and other public securities issued
under this section may be used to:
(1) finance other funds relating to the public security,
including debt service reserve and contingency; and
(2) pay the cost or expense of the issuance of the public
security.
(i) Bonds and other public securities and credit agreements
authorized by this section may not have a principal amount or
terms that, at the time the bonds or other public securities are
issued or the agreements entered into, are expected by the
commission to cause annual expenditures with respect to the
obligations to exceed 10 percent of the amount deposited to the
credit of the state highway fund in the immediately preceding
year.
(j) Bonds and other public securities issued under this section
may be sold in such manner and subject to such terms and
provisions as set forth in the order authorizing their issuance,
and such bonds and other public securities must mature not later
than 20 years after their dates of issuance, subject to any
refundings or renewals.
(k) The comptroller shall withdraw from the state highway fund
and forward at the direction of the commission to another person
the amounts as determined by the commission to permit timely
payment of:
(1) the principal of and interest on the bonds and other public
securities that mature or become due; and
(2) any cost related to the bonds and other public securities
that become due, including payments under credit agreements.
Added by Acts 2003, 78th Leg., ch. 1325, Sec. 5.01, eff. Sept.
13, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
264, Sec. 14.01, eff. June 11, 2007.
Sec. 222.004. ISSUANCE OF GENERAL OBLIGATION BONDS FOR HIGHWAY
IMPROVEMENT PROJECTS. (a) In this section:
(1) "Bonds" means bonds, notes, and other public securities.
(2) "Credit agreement" has the meaning assigned by Section
1371.001, Government Code.
(3) "Improvement" includes acquisition of the highway,
construction, reconstruction, and major maintenance, including
any necessary design, and the acquisition of rights-of-way.
(b) The commission by order or resolution may issue general
obligation bonds for the purposes provided in this section. The
aggregate principal amount of the bonds that are issued may not
exceed the amount specified by Section 49-p(a), Article III,
Texas Constitution.
(c) The commission may enter into credit agreements relating to
the bonds. A credit agreement entered into under this section
may be secured by and payable from the same sources as the bonds.
(d) The bonds shall be executed in the form, on the terms, and
in the denominations, bear interest, and be issued in
installments as prescribed by the commission, and must mature not
later than 30 years after their dates of issuance, subject to any
refundings or renewals. The bonds may be issued in multiple
series and issues from time to time and may have the provisions
the commission determines appropriate and in the interest of the
state.
(e) The commission has all powers necessary or appropriate to
carry out this section and to implement Section 49-p, Article
III, Texas Constitution, including the powers granted to other
bond-issuing governmental agencies and units and to nonprofit
corporations by Chapters 1201, 1207, and 1371, Government Code.
(f) The bonds and the record of proceedings authorizing the
bonds and any related credit agreements shall be submitted to the
attorney general for approval as to their legality. If the
attorney general finds that they will be issued in accordance
with this section and other applicable law, the attorney general
shall approve them and deliver them to the comptroller for
registration. After approval by the attorney general,
registration by the comptroller, and payment by the purchasers of
the bonds in accordance with the terms of sale and after
execution and delivery of the related credit agreements, the
bonds and related credit agreements are incontestable for any
cause.
(g) Bonds may be issued for one or more of the following
purposes:
(1) to pay all or part of the costs of highway improvement
projects; and
(2) to pay:
(A) the costs of administering projects authorized under this
section;
(B) the cost or expense of the issuance of the bonds; or
(C) all or part of a payment owed or to be owed under a credit
agreement.
(h) The proceeds from the issuance and sale of the bonds may not
be expended or used for the purposes authorized under this
section unless those proceeds have been appropriated by the
legislature.
(i) The comptroller shall pay the principal of the bonds as they
mature and the interest as it becomes payable and shall pay any
cost related to the bonds that becomes due, including payments
under credit agreements.
Added by Acts 2009, 81st Leg., 1st C.S., Ch.
1, Sec. 1, eff. July 10, 2009.
SUBCHAPTER B. FEDERAL AID
Sec. 222.031. USE OF FEDERAL AID FOR ROAD CONSTRUCTION. Money
appropriated by the United States for public road construction in
this state may be spent only by and under the supervision of the
department.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995; Acts
1997, 75th Leg., ch. 165, Sec. 30.12, eff. Sept. 1, 1997.
Sec. 222.032. USE OF FEDERAL AID FOR TOLL BRIDGE CONSTRUCTION.
(a) The department may:
(1) cooperate with the United States Secretary of Transportation
in the construction of a toll bridge under 23 U.S.C. Section 129;
(2) spend state highway funds for the purpose described in
Subdivision (1);
(3) impose tolls in accordance with 23 U.S.C. Section 129; and
(4) take other necessary or proper action to give effect to the
purpose and intent of this section.
(b) The department shall impose tolls in accordance with this
section with the goal that the tolls be eliminated, as
contemplated or required by 23 U.S.C. Section 129.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 222.033. INTERSTATE TOLL BRIDGES. (a) Section 222.032
applies to a bridge over a stream forming the boundary of this
state and an adjoining state.
(b) If the bridge is constructed jointly by this state and the
adjoining state, the commission may cooperate with the
appropriate authorities of the adjoining state in imposing tolls
in accordance with this section.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 222.034. DISTRIBUTION OF FEDERAL FUNDS. (a) Federal aid
for transportation purposes that is administered by the
commission shall be distributed to the various parts of the state
for a funding cycle through the selection of highway projects in
the state in a manner that is consistent with federal formulas
that determine the amount of federal aid for transportation
purposes received by the state. A distribution under this
subsection does not include deductions made for the state
infrastructure bank or other federal funds reallocated by the
federal government.
(b) The commission may vary from the distribution procedure
provided by Subsection (a) if it issues a ruling or minute order
identifying the variance and providing a particular justification
for the variance.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.17, eff. Sept. 1,
1997.
See Subsec. (b) for effective date information.
Sec. 222.035. PRIVATE ACTIVITY BONDS. (a) In this section,
"private activity bond" has the meaning assigned by Section
141(a), Internal Revenue Code of 1986.
(b) If the attorney general makes a determination that the
United States Congress has enacted legislation amending the
Internal Revenue Code of 1986 to include highway facilities or
surface freight transfer facilities among the types of facilities
for which private activity bonds may be used:
(1) the determination shall be published in the Texas Register;
and
(2) Subsections (d), (e), (f), and (g) take effect on the 30th
day after the date on which the attorney general's determination
is published in the Texas Register.
(c) The attorney general shall monitor federal legislation for
purposes of this section.
(d) The department shall establish and administer a program for
private activity bonds issued for highway facilities or surface
freight transfer facilities in this state.
(e) The program, at a minimum, must include a process by which
the department and the Bond Review Board receive and evaluate
applications for issuance of private activity bonds for highway
facilities or surface freight transfer facilities.
(f) The department shall adopt rules to administer the program
established under this section.
(g) To the extent that private activity bonds for highway
facilities or surface freight transfer facilities are subject to
the state ceiling under Section 146, Internal Revenue Code of
1986, the issuance of bonds for those facilities is governed by
Chapter 1372, Government Code.
Added by Acts 2005, 79th Leg., Ch.
281, Sec. 2.16, eff. June 14, 2005.
SUBCHAPTER C. FUNDING FROM OTHER POLITICAL SUBDIVISIONS
Sec. 222.051. LOCAL FINANCING AND REIMBURSEMENT. (a) A
governmental unit that has the authority to build roads may
finance the construction of an approved project for the state
highway system.
(b) If funds become available, the department may contract to
reimburse the governmental unit that provided financing for the
project.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 222.052. LOCAL CONTRIBUTIONS. (a) The governing body of a
political subdivision of this state may contribute funds to be
spent by the commission in the development and construction of
the public roads and state highway system within the political
subdivision.
(b) The commission may accept a contribution made under
Subsection (a).
(c) In this section, "political subdivision" includes a county
or a political subdivision of a county.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 222.053. RELIEF FROM LOCAL MATCHING FUNDS REQUIREMENT. (a)
In this section, "economically disadvantaged county" means a
county that has, in comparison to other counties in the state:
(1) below average per capita taxable property value;
(2) below average per capita income; and
(3) above average unemployment.
(b) Except as provided by Subsection (c), the commission may
require, request, or accept from a political subdivision matching
or other local funds, rights-of-way, utility adjustments,
additional participation, planning, documents, or any other local
incentives to make the most efficient use of its highway funding.
(c) In evaluating a proposal to construct, maintain, or extend a
highway or for another type of highway project in a political
subdivision that consists of all or a portion of an economically
disadvantaged county, the commission:
(1) may not consider the absence or value of local incentives
provided under Subsection (b) or the value of a benefit received
by the state in an agreement under Section 791.031, Government
Code, beyond the minimum required local matching funds; and
(2) shall adjust the minimum local matching funds requirement
after evaluating the political subdivision's effort and ability
to meet the requirement.
(d) In making an adjustment under Subsection (c)(2), the
commission may use its in-kind resources and any other available
resources to help satisfy a federal requirement.
(e) The commission shall report annually to the governor, the
lieutenant governor, and the speaker of the house of
representatives on the use of matching funds and local incentives
and the ability of the commission to ensure that political
subdivisions located in economically disadvantaged counties have
equal ability to compete for highway funding with political
subdivisions in counties that are not economically disadvantaged.
(f) The commission shall certify a county as an economically
disadvantaged county on an annual basis as soon as possible after
the comptroller reports on the economic indicators listed under
Subsection (a). A county certified under this section is
eligible for an adjustment under Subsection (c)(2).
(g) The commission shall determine whether to make an adjustment
under Subsection (c)(2) at the time a political subdivision that
consists of all or a portion of an economically disadvantaged
county submits a proposal to construct, maintain, or extend a
highway or for another type of highway project.
(h) The commission may delegate any of its duties or powers
under this section to the director or the director's designee.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.18, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
545, Sec. 1, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
809, Sec. 2, eff. September 1, 2005.
SUBCHAPTER D. STATE INFRASTRUCTURE BANK
Sec. 222.071. DEFINITIONS. In this subchapter:
(1) "Bank" means the state infrastructure bank account.
(2) "Construction" has the meaning assigned by 23 U.S.C. Section
101.
(3) "Federal act" means Section 350 of the National Highway
System Designation Act of 1995 (Pub. L. No. 104-59).
(4) "Federal-aid highway" has the meaning assigned by 23 U.S.C.
Section 101.
(5) "Qualified project" includes:
(A) the construction of a federal-aid highway;
(B) a transit project under 49 U.S.C. Sections 5307, 5309, and
5311; or
(C) for the expenditure of secondary funds, a project eligible
for assistance under Title 23 or Title 49, United States Code.
(6) "Secondary funds" includes:
(A) the repayment of a loan or other assistance that is provided
with money deposited to the credit of the bank; and
(B) investment income generated by secondary funds deposited to
the credit of the bank.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997.
Sec. 222.072. STATE INFRASTRUCTURE BANK. (a) The state
infrastructure bank is an account in the state highway fund. The
bank is administered by the commission.
(b) Federal funds received by the state under the federal act,
matching state funds in an amount required by that act, proceeds
from bonds issued under Section 222.075, secondary funds, other
state funds deposited into the bank by order of the commission,
and other money received by the state that is eligible for
deposit in the bank may be deposited into the bank and used only
for the purposes described in this subchapter.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
1267, Sec. 1, eff. June 18, 2005.
Sec. 222.073. PURPOSES OF INFRASTRUCTURE BANK. Notwithstanding
Section 222.001, the commission shall use money deposited in the
bank to:
(1) encourage public and private investment in transportation
facilities both within and outside of the state highway system,
including facilities that contribute to the multimodal and
intermodal transportation capabilities of the state; and
(2) develop financing techniques designed to:
(A) expand the availability of funding for transportation
projects and to reduce direct state costs;
(B) maximize private and local participation in financing
projects; and
(C) improve the efficiency of the state transportation system.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
1267, Sec. 2, eff. June 18, 2005.
Sec. 222.074. FORM OF ASSISTANCE. (a) To further a purpose
described by Section 222.073, the commission may use money
deposited to the credit of the bank to provide financial
assistance to a public or private entity for a qualified project
to:
(1) extend credit by direct loan;
(2) provide credit enhancements;
(3) serve as a capital reserve for bond or debt instrument
financing;
(4) subsidize interest rates;
(5) insure the issuance of a letter of credit or credit
instrument;
(6) finance a purchase or lease agreement in connection with a
transit project;
(7) provide security for bonds and other debt instruments; or
(8) provide methods of leveraging money that have been approved
by the United States secretary of transportation and relate to
the project for which the assistance is provided.
(b) Financial assistance to a private entity under Subsection
(a) shall be limited to a qualified project that:
(1) provides transportation services or facilities that provide
a demonstrated public benefit; or
(2) is constructed or operated in cooperation with a state
agency or political subdivision in accordance with an agreement
between that agency or political subdivision and the private
entity.
(c) Financial assistance to a public or private entity under
Subsection (a) shall be limited, as applicable, to a qualified
project that is consistent with the transportation plan developed
by the metropolitan planning organization.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
1267, Sec. 3, eff. June 18, 2005.
Sec. 222.0745. INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A
public entity in this state, including a municipality, county,
district, authority, agency, department, board, or commission,
that is authorized by law to construct, maintain, or finance a
qualified project may borrow money from the bank, including by
direct loan, based on the credit of the public entity.
(b) Money borrowed under this section must be segregated from
other funds under the control of the public entity and may only
be used for purposes related to a qualified project.
(c) The authority granted by this section does not affect the
ability of a public entity to incur debt using other statutorily
authorized methods.
Added by Acts 2001, 77th Leg., ch. 4, Sec. 1, eff. April 9, 2001.
Sec. 222.075. REVENUE BONDS. (a) The commission may issue
revenue bonds for the purpose of providing money for the bank.
(b) Except as provided by Subsection (c), the commission may
issue revenue bonds or revenue refunding bonds under this section
without complying with any other law applicable to the issuance
of bonds.
(c) Notwithstanding any other provision of this section, the
following laws apply to bonds issued by the commission:
(1) Chapters 1201, 1202, 1204, 1231, and 1371, Government Code;
and
(2) Subchapters A-C, Chapter 1207, Government Code.
(d) The revenue bonds are special obligations of the commission
payable only from income and receipts of the bank as the
commission may designate. The income and receipts include
principal of and interest paid and to be paid on acquired
obligations, other designated obligations held by the bank, or
income from accounts created within the bank.
(e) The revenue bonds do not constitute a debt of the state or a
pledge of the faith and credit of the state.
(f) The commission may require participants to make charges,
levy taxes, or otherwise provide for sufficient money to pay
acquired obligations.
(g) Revenue bonds issued under this section shall be authorized
by order of the commission and shall have the form and
characteristics and bear the designations as are provided in the
order.
(h) Revenue bonds shall:
(1) be dated;
(2) bear interest at the rate or rates authorized by law;
(3) mature at the time or times, serially, as term, revenue
bonds, or otherwise not more than 50 years after their dates;
(4) be called before stated maturity on the terms and at the
prices, be in the denominations, be in the form, either coupon or
registered, carry registration privileges as to principal only or
as to both principal and interest and as to successive exchange
of coupon for registered bonds or one denomination for bonds of
other denominations, and successive exchange of registered
revenue bonds for coupon revenue bonds, be executed in the
manner, and be payable at the place or places inside or outside
the state, as provided in the order;
(5) be issued in temporary or permanent form;
(6) be issued in one or more installments and from time to time
as required and sold at a price or prices and under terms
determined by the commission to be the most advantageous
reasonably obtainable; and
(7) be issued on a parity with and be secured in the manner as
other revenue bonds authorized to be issued by this section or be
issued without parity and secured differently from other revenue
bonds.
(i) All proceedings relating to the issuance of revenue bonds
issued under this section shall be submitted to the attorney
general for examination. On determining that the revenue bonds
have been authorized in accordance with law, the attorney general
shall approve the revenue bonds, and the revenue bonds shall be
registered by the comptroller. After the approval and
registration, the revenue bonds are incontestable in any court or
other forum for any reason and are valid and binding obligations
in accordance with their terms for all purposes.
(j) The proceeds received from the sale of revenue bonds shall
be deposited in the bank and invested in the manner provided for
other funds deposited under this subchapter.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.373, eff.
Sept. 1, 2001.
Sec. 222.076. SEPARATE SUBACCOUNTS. (a) The bank shall consist
of at least two separate subaccounts, a highway subaccount and a
transit subaccount.
(b) In addition to the subaccounts under Subsection (a), the
commission may create one or more subaccounts that are
capitalized with state funds only. Subaccounts capitalized with
state funds only are not subject to the federal act.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
1267, Sec. 4, eff. June 18, 2005.
Sec. 222.077. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS; INVESTMENT
INCOME. (a) Any funds disbursed through the state
infrastructure bank must be repaid on terms determined by the
commission. The terms must comply with the federal act except for
terms applicable to funds deposited in a subaccount described by
Section 222.076(b).
(b) Notwithstanding any other law to the contrary:
(1) the repayment of a loan or other assistance provided with
money deposited to the credit of a subaccount in the bank shall
be deposited in that subaccount; and
(2) investment income generated by money deposited to the credit
of a subaccount in the bank shall be:
(A) credited to that subaccount;
(B) available for use in providing financial assistance under
this subchapter; and
(C) invested in United States Treasury securities, bank
deposits, or other financing instruments approved by the United
States secretary of transportation to earn interest and enhance
the financing of projects assisted by the bank.
(c) The commission shall administer the bank in compliance with
applicable requirements of the federal act and any applicable
federal regulation or guideline.
(d) The commission by rule shall:
(1) implement this subchapter; and
(2) establish eligibility criteria for an entity applying for
financial assistance from the bank.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.21, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
1267, Sec. 5, eff. June 18, 2005.
SUBCHAPTER E. TOLL FACILITIES
Sec. 222.101. EXPENDITURE OF MONEY. The department may spend
money from any source for the construction, maintenance, and
operation of toll facilities.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 7.01, eff. Sept. 1,
1997.
Sec. 222.103. COST PARTICIPATION. (a) The department may
participate, by spending money from any available source, in the
cost of the acquisition, construction, maintenance, or operation
of a toll facility of a public or private entity on terms and
conditions established by the commission. The commission:
(1) may require the repayment of any money spent by the
department for the cost of a toll facility of a public entity;
and
(2) shall require the repayment of any money spent by the
department for the cost of a toll facility of a private entity.
(b) Money repaid as required by the commission shall be
deposited to the credit of the fund from which the expenditure
was made. Money deposited as required by this section is exempt
from the application of Section 403.095, Government Code.
(c) A bond or other debt obligation issued by a public or
private entity to finance the cost of a toll facility in which
the department participates is an obligation of the issuing
entity and is not an obligation of this state.
(d) On the request of a member of the legislature, the
department shall provide the member a status report on all
highway construction projects, by legislative district, that are
under contract or awaiting funding. The report shall include
projects that would be funded in any manner by state, federal, or
toll funds.
(e) On the request of a member of the legislature, not later
than the 90th day before the date a loan is granted or an
expenditure is made by the department for a project under this
section, the department shall notify each member of the
legislature that represents any part of the area affected by the
project of the status of the project and how any other project in
any other district would be affected.
(f) This section applies to any participation by the department
in the cost of a project under Chapter 284, 361, or 366.
(g) The commission shall adopt rules to implement Subsection
(a).
(h) Money granted by the department each fiscal year under this
section may not exceed an amount that, together with the money
granted for the preceding four fiscal years, results in an
average annual expenditure of $2 billion. This limitation does
not apply to money required to be repaid.
(i), (j) Repealed by Acts 2003, 78th Leg., ch. 312, Sec. 77; Acts
2003, 78th Leg., ch. 1325, Sec. 15.74.
Added by Acts 1997, 75th Leg., ch. 1171, Sec. 7.01, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1237, Sec. 1, eff.
Nov. 6, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 77, eff. June
18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.74, 19.02, eff.
June 21, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
281, Sec. 2.17, eff. June 14, 2005.
Sec. 222.104. PASS-THROUGH TOLLS. (a) In this section,
"pass-through toll" means a per vehicle fee or a per vehicle mile
fee that is determined by the number of vehicles using a highway.
(b) The department may enter into an agreement with a public or
private entity that provides for the payment of pass-through
tolls to the public or private entity as reimbursement for the
design, development, financing, construction, maintenance, or
operation of a toll or nontoll facility on the state highway
system by the public or private entity.
(c) The department may enter into an agreement with a private
entity that provides for the payment of pass-through tolls to the
department as reimbursement for the department's design,
development, financing, construction, maintenance, or operation
of a toll or nontoll facility on the state highway system that is
financed by the department.
(d) The department and a regional mobility authority, a regional
tollway authority, or a county acting under Chapter 284 may enter
into an agreement that provides for:
(1) the payment of pass-through tolls to the authority or county
as compensation for the payment of all or a portion of the costs
of maintaining a state highway or a portion of a state highway
transferred to the authority or county after being converted to a
toll facility that the department estimates it would have
incurred if the highway had not been converted; or
(2) the payment by the authority or county of pass-through tolls
to the department as reimbursement for all or a portion of the
costs incurred by the department to design, develop, finance,
construct, and maintain a state highway or a portion of a state
highway transferred to the authority or county after being
converted to a toll facility.
(d-1) Unless there is an insufficient number of approved
proposals for projects to be developed under an agreement
providing for the payment of pass-through tolls, in any state
fiscal year that begins on or after September 1, 2007, the amount
the department agrees to pay under agreements entered into under
this section as reimbursement to a public or private entity for
project costs may not be less than the yearly average of such
amounts from the date of the creation by the commission of the
pass-through toll program. This subsection expires September 1,
2009.
(e) The department may use any available funds for the purpose
of making a pass-through toll payment under this section except
funds derived from the issuance of bonds under Section 201.943.
Text of Subsec. (f) as added by Acts 2005, 79th Leg., Ch.
281, Sec. 2.18
(f) A regional mobility authority, a regional tollway authority,
or a county acting under Chapter 284 is authorized to secure and
pay its obligations under an agreement under this section from
any lawfully available funds.
(f) Repealed by Acts 2007, 80th Leg., R.S., Ch. 921, Sec.
15.002, eff. September 1, 2007.
Text of Subsec. (g) as added by Acts 2005, 79th Leg., Ch.
281, Sec. 2.18
(g) The commission may adopt rules necessary to implement this
section. Rules adopted under this subsection may include
criteria for:
(1) determining the amount of pass-through tolls to be paid
under this section; and
(2) allocating the risk that traffic volume will be higher or
lower than the parties to an agreement under this section
anticipated in entering the agreement.
(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 921, Sec.
15.002, eff. September 1, 2007.
Text of Subsec. (h) as added by Acts 2005, 79th Leg., Ch.
281, Sec. 2.18
(h) Money repaid to the department under this section shall be
deposited to the credit of the fund from which the money was
originally provided and is exempt from the application of Section
403.095, Government Code.
Text of Subsec. (h) as added by Acts 2005, 79th Leg., Ch.
994, Sec. 1
(h) An agreement under this section should prescribe the roles
and responsibilities of the parties and establish time frames for
any department reviews or approvals in a manner that will, to the
maximum extent possible, expedite the development of the project.
(i) To the maximum extent permitted by law, the department may
delegate the full responsibility for design, bidding, and
construction, including oversight and inspection, to a
municipality, county, regional mobility authority, or regional
tollway authority with which the department enters into an
agreement under this section.
(j) An agreement under this section must provide that the
municipality, county, regional mobility authority, or regional
tollway authority is required to meet state design criteria,
construction specifications, and contract administration
procedures unless the department grants an exception.
(k) An agreement under this section must prescribe the roles and
responsibilities of the parties and establish time frames for any
department reviews or approvals in a manner that will, to the
maximum extent possible, expedite the development of the project.
Added by Acts 2003, 78th Leg., ch. 1325, Sec. 6.01, eff. June 21,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
281, Sec. 2.18, eff. June 14, 2005.
Acts 2005, 79th Leg., Ch.
994, Sec. 1, eff. June 18, 2005.
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 15.002, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1320, Sec. 1, eff. September 1, 2007.
Text of section as added by Acts 2005, 79th Leg., R.S., Ch.
281, Sec. 2.19
For text of section as added by Acts 2005, 79th Leg., R.S., Ch.
994, Sec. 2, see other Sec. 222.1045.
Sec. 222.1045. CONTRACTS OF CERTAIN PUBLIC ENTITIES. (a) In
this section, "public entity" means a municipality, county,
regional mobility authority, or regional tollway authority.
(b) A public entity may contract with a private entity to act as
the public entity's agent in:
(1) the design, financing, maintenance, operation, or
construction, including oversight and inspection, of a toll or
nontoll facility under Section 222.104(b); or
(2) the maintenance of a state highway or a portion of a state
highway subject to an agreement under Section 222.104(d)(1).
(c) A public entity shall:
(1) select a private entity under Subsection (b) on the basis of
the private entity's qualifications and experience; and
(2) enter into a project development agreement with the private
entity.
(d) A private entity selected shall comply with Chapter 1001,
Occupations Code, and all laws related to procuring engineering
services and construction bidding that are applicable to the
public entity that selected the private entity.
(e) A public entity may assign the public entity's right to
payment of pass-through tolls under Section 222.104(b) or (d)(1)
to the private entity.
Added by Acts 2005, 79th Leg., Ch.
281, Sec. 2.19, eff. June 14, 2005.
Text of section as added by Acts 2005, 79th Leg., R.S., Ch.
994, Sec. 2
For text of section as added by Acts 2005, 79th Leg., R.S., Ch.
281, Sec. 2.19, see other Sec. 222.1045.
Sec. 222.1045. CONTRACTS OF CERTAIN PUBLIC ENTITIES. (a) In
this section, "public entity" means a municipality, county,
regional mobility authority, or a regional tollway authority.
(b) A public entity may contract with a private entity to act as
the public entity's agent in:
(1) the design, financing, maintenance, operation, or
construction, including oversight and inspection, of a toll or
nontoll facility under Section 222.104(b); or
(2) the maintenance of a state highway or a portion of a state
highway converted to a toll facility under Section 222.104(c).
(c) A public entity shall:
(1) select a private entity under Subsection (b) on the basis of
the private entity's qualifications and experience; and
(2) enter into a project development agreement with the private
entity.
(d) A private entity selected shall comply with Chapter 1001,
Occupations Code, and all laws related to procuring engineering
services and construction bidding that are applicable to the
public entity that selected the private entity.
(e) A public entity may assign the public entity's right to
payment of pass-through tolls under Section 222.104(b) or (c) to
the private entity.
Added by Acts 2005, 79th Leg., Ch.
994, Sec. 2, eff. June 18, 2005.
Sec. 222.105. PURPOSES. The purposes of Sections 222.106 and
222.107 are to:
(1) promote public safety;
(2) facilitate the development or redevelopment of property;
(3) facilitate the movement of traffic; and
(4) enhance a local entity's ability to sponsor a project
authorized under Section 222.104.
Added by Acts 2007, 80th Leg., R.S., Ch.
1320, Sec. 2, eff. September 1, 2007.
Sec. 222.106. MUNICIPAL TRANSPORTATION REINVESTMENT ZONES. (a)
In this section:
(1) the amount of a municipality's tax increment for a year is
the amount of ad valorem taxes levied and collected by the
municipality for that year on the captured appraised value of
real property taxable by the municipality and located in a
transportation reinvestment zone under this section;
(2) the captured appraised value of real property taxable by a
municipality for a year is the total appraised value of all real
property taxable by the municipality and located in a
transportation reinvestment zone for that year less the tax
increment base of the municipality; and
(3) the tax increment base of a municipality is the total
appraised value of all real property taxable by the municipality
and located in a transportation reinvestment zone for the year in
which the zone was designated under this section.
(b) This section applies only to a municipality the governing
body of which intends to enter into an agreement with the
department under Section 222.104.
(c) If the governing body determines an area to be unproductive
and underdeveloped and that action under this section will
further the purposes stated in Section 222.105, the governing
body of the municipality by ordinance may designate a contiguous
geographic area in the jurisdiction of the municipality to be a
transportation reinvestment zone to promote a transportation
project described by Section 222.104 that cultivates development
or redevelopment of the area.
(d) The governing body must comply with all applicable laws in
the application of this chapter.
(e) Not later than the 30th day before the date the governing
body of the municipality proposes to adopt an ordinance
designating an area as a transportation reinvestment zone under
this section, the governing body must hold a public hearing on
the designation of the zone and its benefits to the municipality
and to property in the proposed zone. At the hearing an
interested person may speak for or against the creation of the
zone or its boundaries. Not later than the seventh day before
the date of the hearing, notice of the hearing and the intent to
create the zone must be published in a newspaper having general
circulation in the municipality.
(f) Compliance with the requirements of this section constitutes
designation of an area as a transportation reinvestment zone
without further hearings or other procedural requirements.
(g) The ordinance designating an area as a transportation
reinvestment zone must:
(1) describe the boundaries of the zone with sufficient
definiteness to identify with ordinary and reasonable certainty
the territory included in the zone;
(2) provide that the zone takes effect immediately on passage of
the ordinance;
(3) assign a name to the zone for identification, with the first
zone designated by a municipality designated as "Transportation
Reinvestment Zone Number One, (City or Town, as applicable) of
(name of municipality)," and subsequently designated zones
assigned names in the same form, numbered consecutively in the
order of their designation;
(4) establish an ad valorem tax increment account for the zone;
and
(5) contain findings that promotion of the transportation
project will cultivate development or redevelopment of the zone.
(h) From taxes collected on property in a zone, the municipality
shall pay into the tax increment account for the zone an amount
equal to the tax increment produced by the municipality.
(i) Money deposited to a tax increment account must be used to
fund projects authorized under Section 222.104, including the
repayment of amounts owed under an agreement entered into under
that section.
(j) Except as provided by Subsection (k), a transportation
reinvestment zone terminates on December 31 of the year in which
the municipality complies with a contractual requirement, if any,
that included the pledge of money deposited to a tax increment
account or the repayment of money owed under the agreement under
Section 222.104 in connection with which the zone was designated.
(k) A transportation reinvestment zone terminates on December 31
of the 10th year after the year the zone was designated, if
before that date the municipality has not used the zone for the
purpose for which it was designated.
(l) Any surplus remaining on termination of a zone may be used
for transportation projects of the municipality in or outside of
the zone.
Added by Acts 2007, 80th Leg., R.S., Ch.
1320, Sec. 2, eff. September 1, 2007.
Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES; TAX
ABATEMENTS; ROAD UTILITY DISTRICTS. (a) In this section:
(1) the amount of a county's tax increment for a year is the
amount of ad valorem taxes levied and collected by the county for
that year on the captured appraised value of real property
taxable by the county and located in a transportation
reinvestment zone under this section;
(2) the captured appraised value of real property taxable by a
county for a year is the total appraised value of all real
property taxable by the county and located in a transportation
reinvestment zone for that year less the tax increment base of
the county; and
(3) the tax increment base of a county is the total appraised
value of all real property taxable by the county and located in a
transportation reinvestment zone for the year in which the zone
was designated under this section.
(b) This section applies only to a county the commissioners
court of which intends to enter into a pass-through toll
agreement with the department under Section 222.104.
(c) The commissioners court of the county, after determining
that an area is unproductive and underdeveloped and that action
under this section would further the purposes described by
Section 222.105, by order or resolution may designate a
contiguous geographic area in the jurisdiction of the county to
be a transportation reinvestment zone to promote a transportation
project described by Section 222.104 that cultivates development
or redevelopment of the area and for the purpose of abating ad
valorem taxes imposed by the county on real property located in
the zone.
(d) The commissioners court must comply with all applicable laws
in the application of this chapter.
(e) Not later than the 30th day before the date the
commissioners court proposes to designate an area as a
transportation reinvestment zone under this section, the
commissioners court must hold a public hearing on the creation of
the zone, its benefits to the county and to property in the
proposed zone, and the abatement of ad valorem taxes imposed by
the county on real property located in the zone. At the hearing
an interested person may speak for or against the designation of
the zone, its boundaries, or the abatement of county taxes on
real property in the zone. Not later than the seventh day before
the date of the hearing, notice of the hearing and the intent to
create a zone must be published in a newspaper having general
circulation in the county.
(f) The order or resolution designating an area as a
transportation reinvestment zone must:
(1) describe the boundaries of the zone with sufficient
definiteness to identify with ordinary and reasonable certainty
the territory included in the zone;
(2) provide that the zone takes effect immediately on adoption
of the order or resolution; and
(3) assign a name to the zone for identification, with the first
zone designated by a county designated as "Transportation
Reinvestment Zone Number One, County of (name of county)," and
subsequently designated zones assigned names in the same form
numbered consecutively in the order of their designation.
(g) Compliance with the requirements of this section constitutes
designation of an area as a transportation reinvestment zone
without further hearings or other procedural requirements.
(h) The commissioners court by order or resolution may enter
into an agreement with the owner of any real property located in
the transportation reinvestment zone to abate a portion of the ad
valorem taxes imposed by the county on the owner's property. All
abatements granted by the commissioners court in a transportation
reinvestment zone must be equal in rate. In the alternative, the
commissioners court by order or resolution may elect to abate a
portion of the ad valorem taxes imposed by the county on all real
property located in the zone. In any ad valorem tax year, the
total amount of the taxes abated under this section may not
exceed the amount calculated under Subsection (a)(1) for that
year.
(i) To assist the county in developing a project authorized
under Section 222.104, if authorized by the commission under
Chapter 441, a road utility district may be formed under that
chapter that has the same boundaries as a transportation
reinvestment zone created under this section.
(j) In any ad valorem tax year, a road utility district formed
as provided by Subsection (i) may impose taxes on property in the
district at a rate that when applied to the property in the
district would impose taxes in an amount equal to the amount of
taxes abated by the commissioners court of the county under
Subsection (h). Notwithstanding Section 441.192(a), an election
is not required to approve the imposition of the taxes.
(k) A road utility district formed as provided by Subsection (i)
may enter into an agreement with the county to assume the
obligation, if any, of the county to fund a project under Section
222.104 or to repay funds owed to the department under Section
222.104. Any amount paid for this purpose is considered to be an
operating expense of the district. Any taxes collected by the
district that are not paid for this purpose may be used for any
district purpose.
(l) Except as provided by Subsection (m), a tax abatement
agreement entered into under Subsection (h), or an order or
resolution on the abatement of taxes under that subsection,
terminates on December 31 of the year in which the county
completes any contractual requirement that included the pledge of
money collected under this section.
(m) A transportation reinvestment zone terminates on December 31
of the 10th year after the year the zone was designated, if
before that date the county has not used the zone for the purpose
for which it was designated.
Added by Acts 2007, 80th Leg., R.S., Ch.
1320, Sec. 2, eff. September 1, 2007.