2005 Texas Transportation Code CHAPTER 222. FUNDING AND FEDERAL AID

TRANSPORTATION CODE

CHAPTER 222. FUNDING AND FEDERAL AID

SUBCHAPTER A. GENERAL PROVISIONS


	§ 222.001. USE OF STATE HIGHWAY FUND.  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.

Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.                    


	§ 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, § 1, eff. Sept. 1, 1995.                    


	§ 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 $3 billion.  The 
commission may only issue bonds or other public securities in an 
aggregate principal amount of not more than $1 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 $600 million 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, § 5.01, eff. Sept. 13, 
2003.    

SUBCHAPTER B. FEDERAL AID


	§ 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, § 1, eff. Sept. 1, 1995;  Acts 
1997, 75th Leg., ch. 165, § 30.12, eff. Sept. 1, 1997.


	§ 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, § 1, eff. Sept. 1, 1995.                    


	§ 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, § 1, eff. Sept. 1, 1995.                    


	§ 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, § 1.17, eff. Sept. 1, 
1997.     


	§ 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, § 2.16, eff. June 14, 
2005.      

SUBCHAPTER C. FUNDING FROM OTHER POLITICAL SUBDIVISIONS


	§ 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, § 1, eff. Sept. 1, 1995.                    


	§ 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, § 1, eff. Sept. 1, 1995.                    


	§ 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, § 1.18, eff. Sept. 1, 
1997.  Amended by Acts 2005, 79th Leg., ch. 545, § 1, eff. Sept. 
1, 2005;  Acts 2005, 79th Leg., ch. 809, § 2, eff. Sept. 1, 2005.

SUBCHAPTER D. STATE INFRASTRUCTURE BANK


	§ 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, § 1.21, eff. Sept. 1, 
1997.     


	§ 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, § 1.21, eff. Sept. 1, 
1997.  Amended by Acts 2005, 79th Leg., ch. 1267, § 1, eff. June 
18, 2005.


	§ 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, § 1.21, eff. Sept. 1, 
1997.  Amended by Acts 2005, 79th Leg., ch. 1267, § 2, eff. June 
18, 2005.


	§ 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, § 1.21, eff. Sept. 1, 
1997.  Amended by Acts 2005, 79th Leg., ch. 1267, § 3, eff. June 
18, 2005.


	§ 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, § 1, eff. April 9, 2001.             


	§ 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, § 1.21, eff. Sept. 1, 
1997.  Amended by Acts 2001, 77th Leg., ch. 1420, § 8.373, eff. 
Sept. 1, 2001.


	§ 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, § 1.21, eff. Sept. 1, 
1997.  Amended by Acts 2005, 79th Leg., ch. 1267, § 4, eff. June 
18, 2005.


	§ 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, § 1.21, eff. Sept. 1, 
1997.  Amended by Acts 2005, 79th Leg., ch. 1267, § 5, eff. June 
18, 2005.

SUBCHAPTER E. TOLL FACILITIES


	§ 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, § 7.01, eff. Sept. 1, 
1997.     


	§ 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, § 77;  
Acts 2003, 78th Leg., ch. 1325, § 15.74.

Added by Acts 1997, 75th Leg., ch. 1171, § 7.01, eff. Sept. 1, 
1997.  Amended by Acts 2001, 77th Leg., ch. 1237, § 1, eff. Nov. 
6, 2001;  Acts 2003, 78th Leg., ch. 312, § 77, eff. June 18, 2003;  
Acts 2003, 78th Leg., ch. 1325, § 15.74, 19.02, eff. June 21, 
2003;  Acts 2005, 79th Leg., ch. 281, § 2.17, eff. June 14, 2005.


	§ 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.
	(e)  The department may use any available funds for the 
purpose of making a pass-through toll payment under this section.

Text of subsec. (f) as added by Acts 2005, 79th Leg., ch. 281, § 
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.

Text of subsec. (f) as added by Acts 2005, 79th Leg., ch. 994, § 1
	(f)  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 whom the department enters into an agreement 
under this section.

Text of subsec. (g) as added by Acts 2005, 79th Leg., ch. 281, § 
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.

Text of subsec. (g) as added by Acts 2005, 79th Leg., ch. 994, § 1
	(g)  An agreement under this section must provide that a 
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.

Text of subsec. (h) as added by Acts 2005, 79th Leg., ch. 281, § 
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, § 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.

Text of subsec. (i) as added by Acts 2005, 79th Leg., ch. 281, § 
2.18
	(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.

Text of subsec. (j) as added by Acts 2005, 79th Leg., ch. 281, § 
2.18
	(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.

Text of subsec. (k) as added by Acts 2005, 79th Leg., ch. 281, § 
2.18
	(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, § 6.01, eff. June 21, 
2003.  Amended by Acts 2005, 79th Leg., ch. 281, § 2.18, eff. 
June 14, 2005;  Acts 2005, 79th Leg., ch. 994, § 1, eff. June 18, 
2005.


	§ 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

Text of subd. (b)(2) as added by Acts 2005, 79th Leg., ch. 281, § 
2.19
		(2)  the maintenance of a state highway or a portion of 
a state highway subject to an agreement under Section 
222.104(d)(1).

Text of subd. (b)(2) as added by Acts 2005, 79th Leg., ch. 994, § 
2
		(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.

Text of subsec. (e) as added by Acts 2005, 79th Leg., ch. 281, § 
2.19
	(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.

Text of subsec. (e) as added by Acts 2005, 79th Leg., ch. 994, § 2
	(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. 281, § 2.19, eff. June 14, 
2005;  Acts 2005, 79th Leg., ch. 994, § 2, eff. June 18, 2005.