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Senate Bill 1434 |
Senate Author: Madla |
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Effective: 6-17-05 |
House Sponsor: Puente |
The Transportation Code previously required the governing body of an advanced transportation district to deposit one-fourth of the proceeds from its sales and use tax in a separate account for the Texas Department of Transportation to use as the local match for state or federal funds. Senate Bill 1434 amends the code to allow a district to transfer those proceeds to a county, municipality, or local government corporation created under the Texas Transportation Corporation Act to finance any cost relating to mobility enhancement purposes in the district's territory. The bill allows the county, municipality, or corporation to pledge and create a lien on the proceeds transferred to it to pay the debt service on bonds issued to finance mobility enhancement projects.
The bill amends the definition of "mobility enhancement" to include the financing of mobility enhancement projects, including arrangements to pay any bond-related cost incurred by or relating to the issuance of obligations by a county or municipality or by a local government corporation acting on behalf of the county or municipality, and it allows an advanced transportation district to use the portion of its sales and use tax proceeds dedicated to advanced transportation purposes for similar bond-related financing agreements or obligations.