In 2003, the Texas Legislature enacted HB 3588, providing many new tools to assist in the delivery and completion of transportation projects, including the formation of public-private partnerships.11 The legislation authorizes the formation of regional mobility authorities (RMAs); expands the tolling authority of the state; authorizes comprehensive development agreements (CDAs); and provides flexibility in funding the Trans Texas Corridor, a proposed multi-use statewide network of transportation routes incorporating existing and new high-ways, railways and utility rights-of-way. A development agreement to begin work on the corridor was negotiated between the state and the Spanish firm Cintra in March 2005.
Under an RMA, an individual county or several counties establish a regional approach to meeting their transportation needs. RMAs have the power to issue bonds or collect tolls and are able to convert existing segments of the state's highway system to toll roads with the approval of the Texas Transportation Commission (TTC). Public outcry against tolling has accompanied TTC hearings on this topic.12 RMAs have authority to purchase rights-of-way and may lease portions of the land for nontransportation related purposes.
Under HB 3588, Texas may commingle toll revenue with state highway funds to build public and private toll roads. Pass-through toll agreements, also known as "shadow" tolls, are allowed. Under a pass-through toll agreement, a local or private entity makes highway improvements using its own funds, and then is reimbursed by the state based on the number of vehicles that use the highway. Williamson County, north of Austin, recently became one of the first to receive approval for a pass-through toll agreement with the state to build six highway projects at a cost of $132 million.13 The legislation also allows the use of the design-build approach to highway construction through CDAs. A CDA may include project design, construction and financing, right-of-way acquisition, and highway operation and maintenance.