85R287 JAM-D
	By: Shaheen	H.B. No. 1282

	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.  Sections 228.012(a) and (b), Transportation
	Code, are amended to read as follows:
	(a)  The department shall create a separate account in the
	state highway fund to hold payments received by the department
	under a comprehensive development agreement [and the surplus
	revenue of a toll project or system].  The department shall create
	subaccounts in the account for each project, system, or
	region.  Interest earned on money in a subaccount shall be
	deposited to the credit of that subaccount.
	(b)  The department shall hold money in a subaccount in trust
	for the benefit of the region in which a project or system is
	located and may assign the responsibility for allocating money in a
	subaccount to a metropolitan planning organization in which the
	region is located for projects approved by the department.  At the
	time the project is approved by the department money shall be
	allocated and distributed to projects authorized by Section
	228.0055 [or Section 228.006, as applicable].
	SECTION 2.  Section 228.053(f), Transportation Code, is
	amended to read as follows:
	(f)  The revenue and disbursements for each toll project or
	system shall be kept separately.  The revenue from one project may
	not be used to pay the cost of another project except as authorized
	by Section [Sections] 228.0055 [and 228.006].
	SECTION 3.  Section 228.104(a), Transportation Code, is
	amended to read as follows:
	(a)  The principal of, interest on, and any redemption
	premium on bonds issued by the commission under this subchapter are
	payable solely from:
	(1)  the revenue of the toll project or system for which
	the bonds are issued, including tolls pledged to pay the bonds;
	(2)  the proceeds of bonds issued for the project or
	system;
	(3)  the amounts deposited in a debt service reserve
	fund as required by the trust agreement securing bonds issued for
	the project or system;
	(4)  amounts received under a credit agreement relating
	to the project or system for which the bonds are issued; and
	(5)  [surplus revenue of another project or system as
	authorized by Section 228.006; and
	[(6)] amounts received by the department:
	(A)  as pass-through tolls under Section 222.104;
	(B)  under an agreement with a local governmental
	entity entered into under Section 228.254;
	(C)  under other agreements with a local
	governmental entity relating to the project or system for which the
	bonds are issued; and
	(D)  under a comprehensive development agreement
	entered into under Section 223.201.
	SECTION 4.  Section 228.105, Transportation Code, is amended
	to read as follows:
	Sec. 228.105.  SOURCES OF PAYMENT OF AND SECURITY FOR TOLL
	REVENUE BONDS.  Notwithstanding any other provisions of this
	subchapter, toll revenue bonds issued by the commission may:
	(1)  be payable from and secured by:
	(A)  payments made under an agreement with a local
	governmental entity as provided by Section 228.254;
	(B)  the proceeds of bonds issued for the toll
	project or system; or
	(C)  amounts deposited in a debt service reserve
	fund as required by the trust agreement securing bonds issued for
	the project or system; [or
	[(D)     surplus revenue of another toll project or
	system as authorized by Section 228.006;] and
	(2)  state on their faces any pledge of revenue or taxes
	and any security for the bonds under the agreement.
	SECTION 5.  Section 366.113(a), Transportation Code, is
	amended to read as follows:
	(a)  The principal of, interest on, and any redemption
	premium on bonds issued by an authority are payable solely from:
	(1)  the revenue of the turnpike project or system for
	which the bonds are issued, including tolls pledged to pay the
	bonds;
	(2)  payments made under an agreement with the
	commission or a local governmental entity as provided by Subchapter
	G;
	(3)  money derived from any other source available to
	the authority, other than money derived from a turnpike project
	that is not part of the same system or money derived from a
	different system[, except to the extent that the surplus revenue of
	a turnpike project or system has been pledged for that purpose];
	and
	(4)  amounts received under a credit agreement relating
	to the turnpike project or system for which the bonds are issued.
	SECTION 6.  Section 370.113(a), Transportation Code, is
	amended to read as follows:
	(a)  The principal of, interest on, and any redemption
	premium on bonds issued by an authority are payable solely from:
	(1)  the revenue of the transportation project for
	which the bonds are issued;
	(2)  payments made under an agreement with the
	commission, the department, or other governmental entity as
	authorized by this chapter;
	(3)  money derived from any other source available to
	the authority, other than money derived from a transportation
	project that is not part of the same system or money derived from a
	different system, except to the extent that the surplus revenue of a
	transportation project or system, other than a turnpike project,
	has been pledged for that purpose;
	(4)  amounts received under a credit agreement relating
	to the transportation project for which the bonds are issued; and
	(5)  the proceeds of the sale of other bonds.
	SECTION 7.  Subchapter B, Chapter 372, Transportation Code,
	is amended by adding Section 372.054 to read as follows:
	Sec. 372.054.  CESSATION OF TOLLS.  (a)  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 revenues 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).
	SECTION 8.  The following provisions of the Transportation
	Code are repealed:
	(1)  Section 228.006;
	(2)  Section 228.109(d);
	(3)  Sections 284.008(c) and (d);
	(4)  Section 366.003(9-a);
	(5)  Section 366.037;
	(6)  Section 366.071;
	(7)  Section 366.072(b); and
	(8)  Section 366.175.
	SECTION 9.  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, 2017.