Bill halts Trans Texas Corridor for Two Years

AUSTIN - A bill that places a two-year hold on the Trans-Texas Corridor (TTC) took effect on June 11, said state Representative Dwayne Bohac, R-Houston.

“Senate Bill 792 will put the brakes on this massive project,” Bohac said. “We know now that at least until 2009 we are one step ahead of keeping the TTC from moving forward until it has been more thoroughly vetted by the public and lawmakers.”

The bill prohibits the Texas Department of Transportation (TxDOT) from selling or entering into a toll project contract during this time period. Also, over the next two years, a legislative study committee will fully vet and explore the public policy implications of allowing a private company to build, operate and collect revenue on state roads. The committee must then submit its findings to the governor and legislative leaders by December 2008 in advance of the 81st Legislative Session.

The TTC is a proposed system of tolled highways, railways and utilities which will one day traverse the state. The two most well-known segments are the TTC-35 which will run from South Texas to Oklahoma through central Texas and TTC-69 which will run from South Texas to Arkansas along the gulf coast through East Texas.

“We had several bills throughout the session that were aimed at halting the Trans-Texas Corridor,” Bohac said. “Eventually, a compromise bill, SB 792, passed.”

SB 792, authored by Senator Tommy Williams, R-The Woodlands, focuses on resolving a number of TTC issues. In addition to the moratorium and study committee provisions, the bill also prohibits non-compete clauses. These clauses require the state to pay private toll operators for traffic diverted from toll roads because of improvements to free state roads.

“In return for operating these toll roads, private toll road companies were allowed to negotiate contractual non-compete clauses by law,” Bohac said. “Simply put, when the state spent money on the maintenance of existing roads that would help ease congestion, the private toll operator could charge the state for estimated losses to their profits. This is absurd, and SB 792 changed this.”

Other parts of the bill limit comprehensive development agreements (CDAs) which, before SB 792, allowed TXDOT and regional mobility authorities to contract with private companies to operate toll roads for a period of up to 70 years. The bill now limits these agreements to increments of 10 years, but no more than 50 years, and requires all of the CDA’s for TTC-35 and TTC-69 to come under review and re-authorization.

“Toll roads, such as those operated by Harris County Toll Road Authority, are not the problem,” Bohac said. “We face challenges providing transportation in this state and there is no consensus on the solution, but CDA’s, foreign toll operators and non-compete clauses are not the answer,” Bohac said.