In June 2003, the Texas state legislature passed HB 3588, which authorized the use of public-private partnerships to develop highway projects in the state. The law authorized TxDOT to enter into a range of "Comprehensive Development Agreements" (CDAs), from design-build procurements (where a single private entity designs and constructs a project), to full design-build-finance-operate-maintain (DBFOM) concessions (where a single private developer would design, construct, finance, maintain and operate an improvement for a designated period of time). This authorization enabled TxDOT to pursue plans for the TTC.
In 2005, in response to growing public opposition to the TTC, HB 2702 was passed to curb the broad powers granted to TxDOT in 2003. HB 2702 prohibited using non-compete clauses in CDAs to bar public investment in parallel routes, required CDAs to include an approved methodology for setting, increasing and collecting tolls, and limited concession terms to 50 years.
While TxDOT was able to fund Segments 1-4 of SH 130 using traditional means, its financial advisers could not find a way to finance Segments 5-6, which faced a funding gap of over $600 million. In order to complete the facility, TxDOT opted to procure the toll project on a P3 basis where a private partner could borrow against the toll proceeds during a designated concession period to raise the needed financing to build the project.