The 85th Texas Regular Legislative Session was a challenging one for transportation issues and advocates. The Legislature succeeded in passing a Sunset bill for the Texas Department of Transportation (“TxDOT”) extending the agency for 12 more years, but that bill included provisions that will make toll project development more difficult. The Legislature also declined to reauthorize the use of public private partnerships (“P3s”) for highway projects. The failure to do so removes an important tool at a time when there are critical projects around the state that lack the necessary funding, and when the Trump administration reportedly will pursue a national infrastructure program based, in part, on private sector investment. Aside from these issues there were no significant policy changes related to transportation funding or project development, although there were a number of bills passed that will be of interest to toll agencies and others interested in transportation issues.

Set forth below is an overview of the process leading to passage of the TxDOT Sunset bill (and the inclusion of one particular anti-toll amendment), the failed effort to reauthorize comprehensive development agreements (“CDAs”), and a general discussion of the circumstances which may have contributed to both. A more detailed discussion of the TxDOT Sunset bill and other legislation is contained in the Appendices.