Immediate ACTION Item

SB 3047 (Zaffirini) - Gerdes amendment is a poison pill. Backdoor way to use non-profit corporation to build toll road to benefit SH 130!

The Republican Party of Texas platform plank #51 calls for all toll roads to be ABOLISHED, not build new ones!

Since the extension of the Comprehensive Development Agreement (CDA) for SH 130 near Austin failed to pass the Senate, the Gerdes Amendment is a backdoor way to get a new toll road connector to SH 130 built through this 'non-profit corporation' anyway. 

On page 6 of the amendment, Section 4022.0303 (lines 12-27) allows a non-profit corporation formed under Chapter 431 of the Transportation Code to implement a road project. 

Section 431.073 of the Transportation Code states:

(b) If approved and authorized by the commission, a corporation created by the state has the rights, powers, privileges, authority, and functions given the department under this title to:

(1) construct, improve, operate, and maintain high occupancy vehicle lanes; and

(2)  charge a toll for the use of one or more high occupancy vehicle lanes for the purpose of congestion mitigation.

Citizens across the political spectrum rose-up in a BIG way against foreign-ownership of our public infrastructure back in 2005. The legislature passed our moratorium on these HORRIBLE toll contracts in 2007. But this CDA on SH 130 got signed before any of our reforms got passed in 2007.

It went bankrupt in less than 3 years. But instead of the taxpayers getting it back free and clear of any debt or tolls, these private toll operators got to keep the 50 year contract in place (until 2045), and now they're back for more. Strategic Value Partners (SVP) became the owners in bankruptcy court. SVP is yet another global company with offices in Connecticut, England, Germany and Japan, who will take all of the money out of Texas. While the current operators are American, these corporate entities frequently sell the contracts just like your mortgage company (read more here), and it's likely to go back to a foreign consortium like the original deal. 

When the CDA was taken over from Cintra, it had 160 pavement defects and 120 breaches of contract (according to court documents), yet the legislature is being asked to continue this sort of road malpractice in Texas by awarding the developer an additional 20 years to gouge Texas drivers with the high cost of private tolls.

What would we get in return? Exorbitantly high toll rates (ie - $24 ONE WAY like the one in Ft. Worth), and TxDOT gets a free connector from I-35 to SH 130, which primarily benefits the private corporation because it will drive more traffic to the private toll road! Great deal for the corporate guys on Wall Street, but not for toll weary drivers being gouged by a private monopoly!

1) When Spanish firm Cintra built the tollway, it took over parts of the existing FREEway through Lockhart and took the 65 MPH speed limit drivers used to enjoy, turned the free lanes into permanent frontage roads, and slowed the speed down to 55 MPH. Cintra then lobbied the legislature to increase the maximum speeds on Texas highways up to 85 MPH. Then subsequently opened the fastest toll road in America (having changed state law to do it). TxDOT got $100 million pay-out from Cintra for maxing out the speed limit.

2) Taxpayers also pay to reduce truck toll rates. In other words, taxpayers pay the private toll operator millions in our hard-earned cash in order to reduce the truck toll rates to incentivize more trucks to use the toll road! 

• Guaranteed profits

• Government-sanctioned monopolies for private equity firms

• Taxpayer-backed loans (federal TIFIA loan)

• Taxpayers footing the bill for any un-collectable tolls for out of state drivers (including those from Mexico)

• The non-compete agreement that prohibits TxDOT from expanding ANY freeways in TWO ENTIRE COUNTIES that could ‘compete' with the private corporation’s toll revenues. (See the map in Exhibit 17 here.)

This is a more crony capitalism & road malpractice.
Call your rep and two others around you. Tell them...