BILL ANALYSIS

H.B. 2203

By: Romero, Jr.

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that the authorization for certain regional transportation authorities to enter into financial agreements with nongovernmental entities for the purpose of encouraging private investment with a transportation authority is too narrow in scope. There have been calls to extend the authority to enter into those agreements to other regional transportation authorities, such as Trinity Metro. H.B. 2203 seeks to address this issue by authorizing certain regional transportation authorities to enter into agreements for the purpose of encouraging private investment.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2203 amends the Transportation Code to authorize a regional transportation authority without a municipality with a population of more than 1.1 million and consisting of one subregion governed by a subregional board, to enter into and execute as it considers appropriate, for purposes of providing tax benefits to another party that are available with respect to property under a foreign country's laws or for purposes of encouraging private investment with a transportation authority in the United States, contracts, agreements, notes, security agreements, conveyances, bills of sale, deeds, leases as lessee or lessor, and currency hedges, swap transactions, or agreements relating to foreign and domestic currency. The bill prohibits such an authority, except as provided in those agreements or instruments, from entering a lease or financing agreement secured wholly or partially by the authority's assets if the duration of the lease or financing agreement is longer than five years, unless the lease or agreement is approved by the authority's voters in the manner provided for the issuance of bonds and notes.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.