Texas § TN.371.101 - TERMINATION FOR CONVENIENCE

§ TN.371.101. TERMINATION FOR CONVENIENCE

TERMINATION FOR CONVENIENCE. (a) A comprehensive development agreement under which a private participant receives the right to operate and collect revenue from a toll project must contain a provision authorizing the toll project entity to terminate the agreement for convenience and to purchase, under terms agreed to by the parties: (1) the interest of the private participant in the comprehensive development agreement; and (2) related property, including any interest in a highway or other facility designed, developed, financed, constructed, operated, or maintained under the agreement. (b) A comprehensive development agreement described by Subsection (a) must include a price breakdown stating a specific price for the purchase of the private participant's interest at specified intervals from the date the toll project opens, of not less than two years and not more than five years, over the term of the agreement. (c) The provision must authorize the toll project entity to terminate the comprehensive development agreement and to purchase the private participant's interest at any time during a specified interval at the lesser of: (1) the price stated for that interval; or (2) the greater of: (A) the then fair market value of the private participant's interest, plus or minus any other amounts specified in the comprehensive development agreement; or (B) an amount equal to the amount of outstanding debt specified in the comprehensive development agreement, plus or minus any other amounts specified in the comprehensive development agreement. (d) A toll project entity shall include in a request for proposals for an agreement described by Subsection (a) a request for the proposed price breakdown described by Subsection (b) and shall assign points to and score each proposer's price breakdown in the evaluation of proposals. (e) A private participant shall, not later than 12 months before the date that a new price interval takes effect, notify the toll project entity of the beginning of the price interval. The toll project entity must notify the private participant as to whether it will exercise the option to purchase under this section not later than six months after the date it receives notice under this subsection. (f) A toll project entity must notify the private participant of the toll project entity's intention to purchase the private participant's interest under this section not less than six months before the date of the purchase. (g) Subsections (b), (c), (d), (e), and (f) do not apply to a project for which a request for proposals was issued before January 1, 2013. (h) If a project requires expansion or reconstruction in a manner that differs from the manner provided in the original project scope or schedule, the price for terminating the comprehensive development agreement may be adjusted to reflect the changes in the agreement. Added by Acts 2007, 80th Leg., R.S., Ch. 264 (S.B. 792 ), Sec. 11.01, eff. June 11, 2007. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 1234 (S.B. 1730 ), Sec. 3, eff. September 1, 2013.