Farm Bureau sends letter of support for HB 1892 to Governor

Link to bulletin here.

Farm Bureau urges governor support of TTC Funding Moratorium
May 7, 2007
Southwest Farm Bureau

Waco – Governor Rick Perry should sign a bill that would establish a two-year moratorium on the controversial Trans Texas Corridor (TTC), according to the board of directors of the state’s largest farm organization.

A letter requesting the governor’s approval of House Bill 1892, signed by the 14 members of the Texas Farm Bureau board, including TFB President Kenneth Dierschke, urges a moratorium on the use of private equity comprehensive development agreements, including the TTC. The letter was delivered to Governor Perry today.

It said in part, “We believe the moratorium envisioned in HB 1892 will give all Texans the opportunity to evaluate future transportation needs and determine if the corridor concept can be modified to reduce its impact on farm and ranch land.”

The bill by Rep. Wayne Smith of Baytown prevents outside entities from buying the rights to build and operate toll roads in Texas and keep the resulting revenues.

Following approval of the letter, Dierschke said, “We remain opposed to the Trans Texas Corridor, but the moratorium will give all of us the chance to take a hard look at the issue. The amount of land that will eventually be taken for this project is staggering.”

Giuliani has ties to Cintra & Macquarie in massive conflict of interest for Presidential candidate

Well, it’s not just social conservatives who should distrust Rudolph Giuliani, take a look at his ties to Cintra, Macquarie and all the open border players in the globalist NAFTA superhighway scheme known as the Trans Texas Corridor (TTC) in Texas. It gets juicy about halfway down…

Note: The author has an error. George H.W. Bush did not adopt Exon Florio in 1988, he was still VP then. Reagan did it. However, the reporter is right about Rudy. Press releases from Bracewell & Giuliani offered in links below.

Link to article here.

NAFTA Superhighway has Giuliani as key player


Diane M. Grassi

Diane M. Grassi
May 4, 2007

On March 25, 2005, U.S. President George W. Bush, former Canadian Prime Minister, Paul Martin and former Mexican President, Vicente Fox, authorized the Security and Prosperity Partnership (SPP), now under the auspices of the U.S. Department of Commerce. Most Americans have little to no knowledge of this seemingly innocuous sounding unofficial treaty and therefore believe there is little reason to be alarmed.

However, what could be misinterpreted as legislation which has been scrutinized, and has gone through the proper channels of government could not be farther from the truth, in that the U.S. Congress has had no direct disclosure of nor has taken part in its execution.

Legally, a treaty would require a two-thirds majority of the U.S. Senate to concur for its ratification as determined by the U.S. Constitution. Cleverly, however, since the SPP is not a treaty, the President was able to avoid such a required procedure by using the power of the Executive Branch. And in August 2006, President Bush additionally crafted a Signing Statement to passed legislation declaring it Constitutional for his administration to withhold information from or deny authority required from the U.S. Congress on the SPP and its negotiations.

With the recent swell and frequency of free trade agreements being passed in the U.S. Congress in the past few years alone, seemingly rushed through without genuine debate or challenge, it would be easy for the public to assume that the SPP was authorized by Congress and thinking matters pertaining to it were in the best interest of the American people. And sadly, many U.S. free trade agreements do not directly better the workers of the countries involved, but are solely reserved for big business profiting from cheap labor, and foreign lobbyists and bureaucrats enriching themselves.

But the SPP is cleverly disguised as a boon for all three North American countries and its citizens, yet has lacked input or oversight from federal, state, or municipal legislators nationwide. The goals of the SPP agenda largely include a call for transparency and unprecedented cooperation with respect to all three governments’ commerce and trade. The endeavor is to join forces in uniting as one competitive body in the global marketplace and to function as the North American Union (NAU), which at the same time whittles away at each country’s sovereignty, its national security and its laws.

The facilitation of the SPP will stem from the use of the U.S. interstate highway system providing the roads for inter-continental and interstate commerce. For that to happen will require retro-fitting of existing interstates as well as building new roads, including gas and power lines, including light rail, from the interior of Mexico, through the central corridor of the U.S. and on into Canada.

Both the proposed NAU and NAFTA Superhighway are offshoots of the North American Free Trade Agreement, signed in 1992 by then President Bill Clinton. At the time it was sold to the American people and the Mexican government as a win-win for both peoples and would re-balance the flow of trade back to Mexico in order for Mexican workers to earn a living wage. But that never transpired and instead backfired, resulting in the onslaught of nearly 20 million illegal aliens since, illegally crossing the U.S. southern border, supposedly looking for decent paying jobs.

But to fully understand the evolution of the call for the need of a NAFTA Superhighway it is important to at least understand the recent history behind it. The introduction of free trade policy has morphed into a priority of the U.S. government today, even putting national security at risk in order to fulfill its agenda. It was the Reagan Administration’s vision of free trade, a direct response to Japan’s explosive growth and expansion in both the automobile and electronics industries in the U.S., which began to shift the balance of trade and the lopsided result we now have today with most of our trading partners.

And fifteen years since the passage of NAFTA has not only enabled the U.S. to globalize arguably beyond proportions in all areas of commerce, industry and trade, but it has helped to foster public-private partnerships, a benign term used to mask what are essentially foreign-direct investments. And foreign-direct investment has grown precipitously since 1988 when former President George H.W. Bush signed the Exon-Florio Amendment to the Defense Production Act of 1950.

It was also in 1988 when then President George H.W. Bush, through Exon-Florio delegated his power to approve or disapprove such foreign acquisitions to the Chairman of the Committee on Foreign Investments in the U.S. (CFIUS), relieving the President of the responsibility in determining national security threats in foreign-direct acquisitions. Unfortunately, the definition of national security in a post-911 world remains too narrow to address protection of critical infrastructure, a scarce defense supply, or preservation of technological standards, among many other risks, unquestioned back in 1988.

The Exon-Florio Amendment authorizes the President to “suspend or prohibit foreign acquisitions, mergers, or takeovers of U.S. companies if a foreign controlling interest might take action that threatens national security.” And the term “foreign control” remains ambiguous and decidedly so. The ramifications of the Exon-Florio Amendment reared its head when in February 2006 CFIUS, an arm of the U.S. Department of the Treasury, became widely recognized for its authorization of the Dubai Ports World to operate multiple East Coast port operations including the Port Authority of New York, and the ports of Baltimore and Miami.

The balancing act of national security and foreign-direct acquisitions has relegated national security concerns to that of an afterthought, as the Department of the Treasury’s prime priority is expanding commerce in the global marketplace. Complaints about the secluded CFIUS process, however, predate the Dubai Ports World alarm bells of 2006. For it was in October 2005 when Senator Richard Shelby, (R) Alabama, called for hearings on the inclusion of Congressional oversight of CFIUS approvals. And it was prior to 2006 when Senator James Inhofe, (R) Oklahoma, lobbied for Congress to be able to reject CFIUS approvals.

As it stands, most every foreign acquisition sails through the approval process. Unless there is a 45-day investigation process after the required 30-day review by CFIUS, the President’s approval is not required and thereby never reaches the Congress for any interaction or input. Between 1988 and 2005 only two foreign acquisitions were unapproved out of 1,555 reviews. Both were withdrawn and eligible for later re-instatement.

Many foreign entities seek out a “pre-screening” with CFIUS’ member agencies, comprised of 12 departments of the U.S. government, if national security concerns are anticipated in order to mitigate the chances of non-approval and triggering the 45-day investigation.

The disparate interests of free trade and the protection of critical infrastructure, and in particular the U.S. highway system as well as public utilities, has given way to high-powered U.S. law firms and professional lobbyist organizations that lay the groundwork for foreign conglomerates to land foreign-acquisition contracts with cash-starved states amenable to foreign-direct investment.

Such is the case with the Trans-Texas Corridor (TTC), the brainchild of the Texas Department of Transportation (TxDOT) in concert with the SPP. It is a multi-billion dollar web of highway building, toll road maintenance, gas pipelines, public utilities and railroad contracts as complex and as multi-layered as the U.S. interstate highway system itself. A flurry of over 20 foreign acquisitions of interstate highway projects and toll road maintenance contracts have been approved since 2003 with many more nationwide working their way through state legislatures, such as that of the New Jersey Turnpike which Governor Jon Corzine believes is ripe for foreign funding.

But the TTC is the biggest and most massive highway building project of them all and for the first time will rely upon a foreign entity to not only maintain toll roads but to have a stake in building, controlling operations and tolls and expanding new roads and critical infrastructure. Additionally, eminent domain law will come into play in order to reconcile the taking of property and farmland for road expansion to accommodate pipelines and railroad tracks.

And much like the SPP planning, which took place behind closed doors, the TTC collaboration began in 2002 in Texas Governor Richard Perry’s chambers, where state legislators and taxpayers were deliberately cut out of negotiations and the bidding process. Negotiations began with the Spanish engineering transportation construction firm, Cintra Concesiones de Infrastructures de Transporte, S.A., a subsidiary of the Grupo Ferrovial, which specializes in toll roads and car parks and considered a leading developer of private-sector infrastructure throughout Europe.

At the center of negotiations for multiple legs of the Superhighway Corridor throughout Texas, is none other than Rudolph Giuliani’s law firm which landed the Comprehensive Development Agreement for a widening of Interstate-35, now referred to as the TTC-35, in addition to the Master Development Plans for State Highways 121 (see their press release here,) and 130 among other legs of the TTC. All negotiations for Cintra were and are presently handled by the law firm, Bracewell & Giuliani, LLP, of which Republican Presidential candidate, Rudolph Giuliani, has been a senior executive partner since March 2005. His law firm is the exclusive legal counsel for Cintra. Bracewell & Giuliani is comprised of 400 attorneys, based in Houston, TX with offices in New York City, Washington, D.C., London and Kazakhstan.

Cintra joined with San Antonio, TX-based Zachry Construction Corp. to help land the contracts, in which Zachry owns a 20% interest. The Cintra-Zachry proposal for TTC-35 includes a private investment of up to $6 billion in upfront payments for the complete construction, design and operation of a 316-mile toll road between Dallas and San Antonio, giving Cintra the right to set tolls and keep toll road profits for a period of 50 years, as it will for each road it has contracted.

The NAFTA Superhighway and its corridors will run from Southwestern Mexico through Laredo, Austin and Dallas, TX, into Kansas City, KA, serving as an inland customs port. The corridor will split in Kansas with one leg going to Winnipeg, Canada through Omaha, NE. The other leg goes to Toronto, Canada through Des Moines, IA, Chicago, IL and Detroit, MI.

As many as 10 lanes, one-mile wide will incorporate double rails and pipelines. The second corridor is planned from Brownsville to Houston, TX through Arkansas, Memphis, TN and into Norfolk, VA. While the principal use for these corridors is to speed Asian goods into the Central and Eastern U.S., it will require 145 acres of land per mile or 540,000 total acres of land. And in Texas, the state may utilize its own discretion in using eminent domain law in order to reach its goal.

Had gasoline tax revenues been properly allocated and solely reserved for highway projects over the years, neither Texas nor numerous other states would be as desperate for funds as they claim they now are, as many highway funds have been found to have been raided for other state projects and public funding.

The citizens of Texas only as recently as February 2007 began to attend state legislative hearings where many state lawmakers themselves were beginning to become familiar with the Cintra contracts. Several have called for a moratorium on at least the TTC-35 project, envisioned as a high-speed highway, until they can evaluate issues such as eminent domain, cost benefit analysis, environmental impact and homeland security ramifications.

Most interesting to the whole story is not only has Mr. Giuliani’s involvement in the NAFTA Superhighway not ever having been publicly addressed, but how a foreign company is awarded the building of a mass highway system, versus maintaining it, for the first time in U.S. history, and negotiated by the law firm of the top Republican candidate running for President of the United States. And truly disturbing is how such will not only have national and homeland security and sovereignty implications but how it is deliberately being kept away from the Halls of Congress.

Giuliani fancies himself as an expert on homeland security issues and a law enforcer. And he has amassed quite the portfolio since 2002, earning $20 million in that year alone, by selling himself as such. He owns Giuliani Partners, Giuliani Safety & Security and Giuliani Capital Advisors. In March 2007 he sold Giuliani Capital Advisors, a former Ernst & Young finance company he purchased in 2002, to Macquarie Infrastructure Consortium (see announcement on their web site here). Not coincidentally, it is a partner of Cintra’s in its shared operations of toll roads in both Indiana and Chicago, IL.

Bracewell & Giuliani represents some of the biggest multi-national oil, utility infrastructure and financial corporations both in the U.S. and abroad. With that have come the connections that Giuliani has been able to tap into for campaign donors, essential for his presidential bid, not only in Texas but nationwide, as he has become the consummate globalist. But more troubling than potential conflicts of interest as a public servant is his lack of compunction to secure U.S. borders and then planting himself squarely in the middle of one of the most controversial and historic highway system projects since the 1956 National Federal-Aid Highway Act.

Particularly unnerving, given Guiliani’s personal experience on 9-11, is his defense of open borders at any cost while condoning the NAFTA Superhighway Corridor and by extension the North American Union, without the purview or consent of the U.S. Congress or the will of the American people.

We should have seen it coming when Giuliani enacted Special Order 40 in 1994, during his tenure as Mayor of New York City, in ordering law enforcement officers to no longer check the legal status of suspects caught violating the law. We should have seen it coming when Rudolph Giuliani single-handedly decided that illegal aliens were not lawbreakers and also quit upholding the law. And unfortunately we now do see it coming. But sadly, he may now actually be handed the opportunity to no longer defend and abide by the U.S. Constitution of the United States of America.


Diane M. Grassi is a freelance columnist, reporting and writing commentary on current events of the day that provide honest and often politically-incorrect assessments. From U.S. public policy to Major League Baseball, she is an eclectic thinker, and demanding of her readers to reflect on their own thinking patterns from an alternative perspective. Whether you agree with her or not, Diane M. Grassi will have you coming back to note her opinions, and if at best she wakes you up, then her goal will have been accomplished.

Florida sends bill to allow private leases of existing toll roads to Governor

Link to article here.
Florida will soon be one of the 21 states that have passed legislation allowing these public-private partnership toll road contracts (contracts that allow government to lease our PUBLIC highways to PRIVATE companies, most of them foreign) where the government either gets a huge upfront payment in return for the company getting to collect toll revenues for 50+ years, or the State and the private partner engage in some sort of profit sharing scheme where they split the toll revenues.

Either way it’s a BIG tax increase on driving. We’re already crumbling under $3 a gallon for gas, this unsustainable shift to tolls (1-3 cents a mile in gas tax versus 44 cents to $1.50 a mile in tolls) will likely cause a major economic collapse. There’s only so much money in the household budget that can go to transportation before other areas erode like entertainment, eating out, vacations, and eventually necessities…what are we supposed to do? Choose between eating and getting to work?

Single North American currency, the Amero, is coming says economist on CNBC

View it on YouTube here.

We’re well past the “conspiracy theory” on this…WAKE-UP America and learn what Texans already know…we’re on our way to FORCIBLY becoming a North American Union, without borders, with a single currency, and with the exploitation of cheap labor that will destroy the American worker, entrepreneurs, and the American dream in order to facilitate global corporations’ massive influx of cheap goods from China.

The purpose of the NAFTA Superhighways, known as the Trans Texas Corridor in Texas, is to build trade corridors to get Chinese goods to market faster than the backlogged ports on the East and West coasts. It’s all part of a larger scheme to establish a North American Union without the approval of Congress or a vote of the American people.

Perry tries to sabotage moratorium!

In a breathlessly lawless maneuver, Governor Perry is trying to refuse the receipt of HB 1892 from the Legislature by not having a clerk available to timestamp it (and have the 10 day period begin), according to the Quorum Report. The House passed the bill 139-1 Wednesday, May 2, and the Governor has 10 days to sign it, veto it, or allow it to become law without his signature.

BUT, the 10 day clock doesn’t start until a clerk from his office officially timestamp’s the bill. So, Perry is getting an extra 3 days to peel off senators to try and prevent them from overriding his veto. These lawless and childish antics are more akin to kindergarten schoolyards than befitting a sitting Governor of one of the largest states in the Nation. He’s throwing more than a hissy fit, he’s obstructing the Legislature from being able to enact law. A classic separation of powers violation we’re getting accustomed to with this rebellious, elitist, special interest Governor.

He’s also thwarting the will of the PEOPLE of Texas in an unprecedented move to prevent a bill of the PEOPLE from becoming law. We expect this from dictators, not from elected representatives in a democracy. This is an affront to our freedom of self-governance. Rather than graciously cede defeat, this Governor chooses to behave as a lawless dictator who himself along with his Department of Transportation is out of control.

Perhaps we need to renew the call to impeach Perry.

ACTION ALERT

Call Governor Perry….bury his office with respectful, but firm voter fury, and ask him to stop his antics and accept what the PEOPLE of Texas asked their representatives to do. He needs to RECEIVE the bill from the legislature, and sign this bill into law or get the veto over with so our representatives can override him as the law allows.

Keep calling until you get through…

Citizen opinion line:

(800) 252-9600

Main switchboard:

(512) 463-2000

Email to his transportation aide:

kheckmann@governor.state.tx.us

____________________________________

Now the explanation is the clerk went home “sick”…

Austin American Statesman
Saturday, May 5, 2007
Sick aide stalls measure

A bill restricting toll road powers, one many think will end up with a gubernatorial veto, has run into a couple of hitches on the way to Gov. Rick Perry’s desk.

As of the end of business Friday, more than two days after it got final passage in the House, House Bill 1892 was not officially on the governor’s desk. That means, assuming his office accepts the bill Monday, that Perry will have until May 18 to sign or veto the bill or let it become law without his signature.

The first problem was the Legislature’s doing. The bill had a few technical language errors, which required passage of concurrent resolutions. That occurred early Thursday afternoon. Then, Friday afternoon, Greg Davidson, the only person in the governor’s office allowed to accept and time-stamp bills, went home sick. Four attempts were made to contact Davidson, by phone, e-mail and in person, before his illness became known.

Colin Parrish, chief of staff for the sponsor, Rep. Wayne Smith, R-Baytown, said, “There ought to be a backup.”

Wilson County News on the passage of moratorium

Citizens get two-year moratorium on TTC
By Elaine Kolodziej
Wilson County News
May 4, 2007

Last week’s vote on HB 1892 was widely hailed by rural Texans opposed to toll roads as yet another victory in their ongoing effort to stop the Trans-Texas Corridor, at least in its present form.

“This goes to show ‘we, the people’ can do it. This is a stunning, stunning victory for the citizens of Texas,” said Kathy Palmer, vice chair on the Planning and Zoning Committee for St. Hedwig.

HB 1892 passed the Senate easily, and the House by an amazing 139-1. It places a two-year ban on the CDAs, including the TTC, through Sept. 1, 2009. CDAs are comprehensive development agreements or public-private partnerships such as the Cintra/Zachary consortium that was to planning to fund the TTC.

“The people of Texas have spoken,” said Terri Hall, regional director of San Antonio Toll Party, a non-partisan group organized to stop the “double tax tolling” of existing freeways and rights of way.

“They’ve stormed the Capitol and the Legislature listened,” she said.

With the bill headed to the governor’s desk, one of three things can happen. He can sign it, veto it, or take no action, which means it automatically becomes law.

The governor, a staunch supporter of the Trans-Texas Corridor and CDAs, has until May 14 to veto the bill.

“It’s clear we have the support to override any veto,” said Hall. “If this governor is interested in reflecting the will of the people, he would be wise not to veto this bill. Our victory is no nail-biter; it’s about as convincing as you can get.”

If the governor does follow through with a veto, backers of the moratorium are prepared to continue their efforts to ensure that the veto is overridden. A two-thirds vote by the House and the Senate is required to overrule the governor’s veto.

“We don’t need to sell off our public highways to the highest bidder like Third World countries. We’re Texans and we’ve built our own highways for the last 50 years, and we’ll continue to build our own highways for the next 50,” said Hall.

Battle between Federal Highway Admin. & TX legislature makes national news!

Link to article here. It’s nothing short of stunning that our President, a Texan, is treating his state this way. To have to have one of our senators, Kay Bailey Hutchison, send a letter asking the Federal Highway Administration (FHWA) to BACK OFF from its illegal lobbying, is an abomination! This President and this Governor don’t seem to care one flip about representing the will of the people. We’re all supposed to let the elite Rockefeller Republicans rule and get out of the way while they “marry” (as James Ray of FHWA recently stated) our government with corporations. If these guys want a showdown, a showdown they will get. I’m quite confident Texans aren’t going to take this top-down, elitist cronyism where everything in America is for sale to the highest bidder (be it highways, ports, airports, lotteries, power plants) any longer.

PREMEDITATED MERGER
Battle with feds brewing over ‘superhighway’
Texas legislators overwhelmingly pass bill blocking construction


Posted: May 4, 2007
By Jerome R. Corsi
© 2007 WorldNetDaily.com


A battle between Texas and the Bush administration is brewing over construction of the Trans-Texas Corridor after the state legislature passed a two-year moratorium. The Texas House passed HB1892 Wednesday after the Senate last week approved an earlier version of the moratorium on a project some critics see as part of a “NAFTA superhighway” system and ties with Canada and Mexico that threaten U.S. sovereignty. The bill has been sent to Gov. Rick Perry for signature by May 14, but it passed with veto-proof margins of 27-4 in the Senate and 139-1 in the House.

The Bush administration appears determined to fight the moratorium.

WND reported last week FHWA Chief Counsel James D. Ray wrote a four-page letter to Michael Behrens, executive director of the Texas Department of Transportation, threatening the loss of federal highway funds if the legislature were to pass a two-year moratorium of the public-private partnership financed by Cintra, an investment consortium in Spain.

WND previously has reported TTC-35, the nation’s first NAFTA superhighway, is a four-football-field wide car-truck-train-pipeline toll road the Texas Department of Transportation plans to build parallel to Interstate 35 from Laredo, Texas, to the Texas-Oklahoma border south of Oklahoma City.

TTC is a public-private-partnership heavily promoted on the FHWA website, largely because the corridor will be financed by Cintra, an investment consortium in Spain that will manage the toll road under a 50-year lease.

On Tuesday, Sen. Kay Bailey Hutchinson, R–Texas, wrote to the Federal Highway Administration objecting to a threatening letter the agency recently wrote the Texas Department of Transportation.

Hutchinson wrote J.Richard Capka, the FHWA administrator, charging that Ray’s letter “placed a cloud over current actions being taken in the Texas Legislature.”

Hutchinson further wrote that as “someone who has worked to increase Texas’ share of federal transportation dollars, I understand the need to make sure that Texas has all options to leverage funds.”

Hutchinson cautioned, “While the administration plays a valuable role in providing technical guidance and assistance for states considering legislation which may impact federal funds, there is a fine line between analysis and advocacy in those deliberations.”

Hutchinson invited Capka to take steps to remove the threatening impression caused by Ray’s letter.

In the looming battle, the Bush administration can expect to find an ally in Rep. Mike Krusee of Williamson County, Texas.

WND has confirmed a previous report that Ray’s letter was prompted by a request Krusee sent to FHWA asking for an opinion specifically on HB1892, the version of the moratorium that passed the Texas House.

WND also previously reported Krusee was a prime mover of the enabling legislation the Texas legislature passed paving the way for the TTC project. In November 2006, Krusee barely won re-election to the Texas legislature, after a campaign in which his support of TTC development was hotly contested.

In a scathing attack on Krusee, the Texas blog EyeonWilliamson.org posted charges that Krusee has pursued a private consulting contract to help consultant Wilbur Smith Associates, a transportation infrastructure consulting firm, shepherd a proposal through the Department of Transportation’s “Corridor of the Future” grant competition.

Wilbur Smith Associates proposes to build a new cross-country toll road along the Interstate 10. The Wilbur Smith proposal was designed to meet the “Corridor of the Future” emphasis on public-private partnerships of the type Krusee has pushed for years through the Texas legislature.

On Feb. 1, Secretary of Transportation Mary Peters announced that the Interstate-10 proposal was among the eight “Corridor of the Future” finalists.

Krusee was also invited Feb. 9 to speak at an invitation-only White House “Transportation Leadership Summit,” which EyeonWilliamson.org took to be “evidence of Krusee’s ever-increasing favor with the Bush administration.

WND contacted Krusee’s office and asked a series of specific questions, including whether Krusee had a business relationship with Wilbur Smith Associates, as charged by EyeonWilliamson.org.

Instead of answering the specific questions, James Walpole, a spokesman for Krusee, e-mailed to WND a press release.

The statement affirmed Krusee had asked FHWA for an opinion on the moratorium bill

“Since I had questions about whether the tollway moratorium now passed by the Senate would jeopardize precious federal highway funding,” the press release read, “I asked the federal highway administration to give its opinion.”

WND also has reported the Texas ports of Houston and Corpus Christi are planning to accommodate megaships from China that will pass through an expanded Panama Canal. Both ports are working with the Texas Department of Transportation to connect with TTC projects for the Chinese containers to be transported inland.

Tollers admit HB 1892 will kill private toll contracts in TX

The Carona amendment added to the bill a week ago was the nail in the coffin. In a brilliant move by the Senator, he realized his stand alone omnibus bill had too many TxDOT goodies to get it passed (that’s one of the pitfalls of a compromise bill), so he worked with the authors and added the best provisions of it (that properly restrain CDAs). HB 1892 had a veto-proof backing, so it was the only way to get it past the Governor. The Carona Amendment also puts an end to ALL CDAs when the moratorium is lifted. With such a LOUD message from the grassroots and Legislature, the private operators will likely leave Texas for good. Hurray! As we’ve said before, Texas is the 5th largest economy in the world and we’ve been building our own roads for the last 50 years and we’ll continue to build our own roads for the next 50 years. Bye, bye, Cintra and private toll companies! Good riddance!

Link to Toll Roads News here.

Killer clause in Texas bill bans early termination refund based on future toll revenues
Toll Road News
May 2, 2007

There’s a little noticed killer clause in concession freeze bills voted out of the Texas legislature Wednesday (May 2) – a ban on refund formulas based on estimates of future toll revenue in case of early termination by the state – so-called termination for convenience.

The concession freeze bill HB1892 has continued to yo-yo back and forth between the Texas senate and house with many amendments being thrown into the bill in the past week. Only Wednesday afternoon did the two houses get identical bills passed, when by 139 to 1 the House passed a senate bill.

It is not clear many legislators noticed what is being described as a killer clause because it will block even the toll concessions supposedly exempted from the two year freeze, and would prevent resumption of concessions after the freeze. Legislators from the Dallas area spent many hours arguing to allow concessions in their area to proceed and the bill as passed Wednesday allows SH121, SH161, and several others to proceed.

However they won’t proceed because the bill contains a “Termination for convenience” clause which requires in the concession contract a formula for making an early termination payment to a concessionaire. That allows the compensation to be based on past investment expenditure by the concessionaire and an agreed rate of return on that investment, but prohibits the formula being related to prospective future toll revenues.

Prospective future revenues are the core value of a toll concession – at least the net revenues after operating costs. Concession bids are based on projected net revenues over the life of the concession so if a concession can be terminated at any time by the state without regard to future revenues lost by the termination there is no basis for a bid.

This is a killer clause.

Concessionaires won’t bid in Texas if that clause becomes law.

In the vote today the pioneer of toll concessions in Texas, house transportation committee chair Mike Krusee was the lone representative voting against HB1892 though several representatives abstained or were absent.

TERMINOLOGY: Texas legislators don’t use the term ‘toll concession.’ Instead they use the labored formulation of “a comprehensive development agreement under which a private participant receives the right to operate and collect revenue from a toll project.” Concessionaires are described as “private participants.”

HB1892 text including killer clause Sec 371.101 (b) (a):

SUBCHAPTER C. CONTRACT PROVISIONS
Sec. 371.101. TERMINATION FOR CONVENIENCE. (a) A toll
project entity having rulemaking authority by rule and a toll
project entity without rulemaking authority by official action
shall develop a formula for making termination payments to
terminate a comprehensive development agreement under which a
private participant receives the right to operate and collect
revenue from a toll project. A formula must calculate an estimated
amount of loss to the private participant as a result of the
termination for convenience that is based on investments,
expenditures, and rate of return associated with the project.
(b) A formula under Subsection (a) may not include an
estimate of future revenue from the project.

The full bill as passed is not yet available in a single document.

TOLLROADSnews 2007-05-03

$8 billion in YOUR taxes unspent in state budget; there's your highway money!

In a stunning paradox, a story on the front page of the Dallas Morning News opposite the story on the private toll moratorium going to the Governor’s desk, shows the total disconnect happening in public policy. You’ve got Perry using the starved gas tax as an excuse to sell our highways to the highest bidder (like third world countries) juxtaposed with record surpluses and his recommendation that the excess surplus returns to the taxpayers in tax relief. No reporter, no editor even caught the hypocrisy. It doesn’t take a rocket scientist to put two and two together and BA BING…you apply that unspent $8 billion to the starved gas tax you’ve raided for 20 years and it solves a MAJOR transportation issue while precluding the need for widespread tolling (and the need to raise the gas tax) and preserves the integrity of the public highway system. Local Hero Commissioner Lyle Larson has railed on the Legislature about this and has asked the Governor repeatedly to return the STOLEN money from this dedicated fund.

May 2, 2007
Perry pushes for more property tax relief

House and Senate leaders have been working behind closed doors to work out a final draft of the budget, negotiating the differences between the two chambers. Both houses have allocated money for the final phase of the one-third reduction in property tax rates that was enacted last year, but neither included an additional $2.5 billion that Perry asked for in January.

“Both the Senate and the House budgets leave roughly $8 billion sitting on the table,” Perry said. “I think it’s reasonable to take a third of that, give it back to the people … so they can spend it, they can deal with it as they see fit.”

Lt. Gov. David Dewhurst, who leads the Senate, called the governor’s proposal “imprudent.”

“I can’t believe that he said that because he knows as well as all of us that we’ve worked real hard this year to set aside the money to provide the local school property taxes,” Dewhurst said.

Asked if there were any way to give an additional $2.5 billion in property tax relief as Perry had requested, Senate Finance Chairman Steve Ogden said it wouldn’t be possible.

“The governor’s entitled to say whatever the governor thinks,” Ogden said.

Budget writers have set aside about $8 billion for future use. Some of that money would be put in the state’s so-called Rainy Day Fund and part of it would be set aside to fund the already-promised property tax cuts in the next two-year budget.

The one-third rate reduction that lawmakers enacted last year as part of a court-ordered overhaul of the state’s school funding system will cost about $14 billion every two years. A new business tax was enacted to replace the lost property tax money in the state’s education budget, but that doesn’t cover the $14 billion price tag of the tax cuts.

This year, lawmakers have a record budget surplus to close the gap, but state leaders can’t count on another surplus to bail them out in future budgets. That’s why lawmakers set aside some money to cover the difference in the 2010-11 state budget.

“We’re going to go cut property taxes by $14 billion — we’ve got to make it up with something,” Ogden said.

House Speaker Tom Craddick, who presides over the House, said many House lawmakers would like to give more property tax relief, and said he expects the chamber will get an opportunity to vote on such an effort, though it might be a lower amount.

Craddick also has been adamant that money be left on the table for future tax cuts.

But Perry said that money should be put back into the Texas economy.

“I am a fiscal conservative and I think it’s better for the people of the state of Texas to have the money in their pocket than it is for government to have it in an account,” Perry said. “Texans by and large know how to spend their money better than government does and to leave it sitting in an account doesn’t particularly make good economic sense to me.”

Further complicating matters, Comptroller Susan Combs has told lawmakers that the new business tax won’t raise as much money as they originally anticipated.

“I want to close all the loopholes so the business tax works the way it was intended,” Ogden said. “Then, I think the discussion on whether there should be additional tax cuts or not is appropriate.”

TX Monthly: Governor will veto, Senate will fold

Link to blog here.

We’re not going to make predictions, we’re waiting for the Governor to make his move. We have more pressing needs…like defeating Props 1 & 2 of the City Bond, electing a new Mayor, and city councilmembers who will vote with us at the MPO.

Texas Monthly Blog
Wednesday, May 02, 2007

The Long Hot Summer

By Paul Burka

One of the truisms about the Legislature is that the game is played in multiple arenas. You can lose in committee and win on the floor; lose in the House and win in the Senate; win in both houses and lose in the governor’s office; beat the governor and still lose. We are about to learn this lesson anew on the transportation bill. House Bill 1892 will not become law in its present form. Governor Perry will veto the bill. He will never accept the primacy of the metropolitan toll authorities over Tx-DOT. I believe the Senate will fail to override the veto. Even if both houses override, however, the game is not over. Perry will call a special session on transportation. If the Legislature fails to send him a bill he can live with (which repeals the objectionable provisions of 1892), he will call another special session. And another. This is war. The Legislature can avoid the showdown by recalling 1892, in which case Perry could allow the stand-alone moratorium to become law. I don’t believe the Legislature has the stomach for this fight._________________________________

Read the comments posted after his blog for more insight.